tailieunhanh - Ebook Intermediate financial management (12th edition): Part 2

(BQ) Part 2 book "Intermediate financial management" has contents: Capital structure decisions, other topics in working capital management, enterprise risk management, mergers and corporate control, multinational financial management, lease financing,.and other contents. | PART IV Strategic Financing Decisions C h a p t e r 15 Distributions to Shareholders: Dividends and Repurchases C h a p t e r 16 Capital Structure Decisions C h a p t e r 17 Dynamic Capital Structures and Corporate Valuation 569 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Chapter 15 WEB The textbook’s Web site contains an Excel file that will guide you through the chapter’s calculations. The file for this chapter is Ch15 Tool , and we encourage you to open the file and follow along as you read the chapter. Distributions to Shareholders: Dividends and Repurchases Because a company’s value depends on its ability to generate free cash flow (FCF), most of this book has focused on aspects of FCF generation, including measurement, forecasts, and risk analysis. In contrast, this chapter focuses on the use of FCF for cash distributions to shareholders. Here are the central issues addressed in this chapter: Can a company increase its value through its choice of distribution policy, defined as: (1) the level of distributions, (2) the form of distributions (cash dividends versus stock repurchases), and (3) the stability of distributions? Do different groups of shareholders prefer one form of distribution over the other? Do shareholders perceive distributions as signals regarding a firm’s risk and expected future free cash flows? Before addressing these questions, let’s take a look at the big picture regarding cash distributions. B e g i n n i n g-of-Ch a p t e r Q u e s t i o n s A s you read the .