tailieunhanh - Lecture note Essentials of corporate finance – Chater 14: Dividends and dividend policy

In this chapter, you will: Understand dividend types and how they are paid, understand the issues surrounding dividend policy decisions, understand the difference between cash and share dividends, understand why share repurchases are an alternative to dividends. | 14- Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 14- Key Concepts and Skills Understand: Dividend types and how they are paid The issues surrounding dividend policy decisions The difference between cash and stock dividends Why share repurchases are an alternative to dividends 14- Chapter Outline Cash Dividends and Dividend Payment Does Dividend Policy Matter? Establishing a Dividend Policy Stock Repurchase: An Alternative to Cash Dividends Stock Dividends and Stock Splits 14- Cash Dividends Regular cash dividend = cash payments made directly to stockholders, usually each quarter Extra cash dividend = indication that the “extra” amount may not be repeated in the future Special cash dividend = similar to extra dividend, but definitely won’t be repeated Liquidating dividend = some or all of the business has been sold Return to Quick Quiz 14- Dividend Payment Chronology Declaration Date | 14- Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 14- Key Concepts and Skills Understand: Dividend types and how they are paid The issues surrounding dividend policy decisions The difference between cash and stock dividends Why share repurchases are an alternative to dividends 14- Chapter Outline Cash Dividends and Dividend Payment Does Dividend Policy Matter? Establishing a Dividend Policy Stock Repurchase: An Alternative to Cash Dividends Stock Dividends and Stock Splits 14- Cash Dividends Regular cash dividend = cash payments made directly to stockholders, usually each quarter Extra cash dividend = indication that the “extra” amount may not be repeated in the future Special cash dividend = similar to extra dividend, but definitely won’t be repeated Liquidating dividend = some or all of the business has been sold Return to Quick Quiz 14- Dividend Payment Chronology Declaration Date – Board declares the dividend and it becomes a liability of the firm Ex-dividend Date Occurs two business days before date of record If you buy stock on or after this date, you will not receive the upcoming dividend Stock price generally drops by approximately the amount of the dividend Date of Record – holders of record are determined, and they will receive the dividend payment Date of Payment – checks are mailed Return to Quick Quiz 14- The Ex-Dividend Day Price Drop Figure 14- Does Dividend Policy Matter? Dividends matter The value of the stock is based on the present value of expected future dividends Dividend policy may not matter Dividend policy is the decision to pay dividends versus retaining funds to reinvest in the firm In theory, if the firm reinvests capital now, it will grow and can pay higher dividends in the future 14- Illustration of Irrelevance Wharton Corporation All equity firm with 100 shares outstanding Investors require a 10% return.

• Tài chính doanh nghiệp
• Corporate finance
• Essentials of corporate finance
• Financial management
• Business finance
• Business organisation
• Dividend policy
• Dividends and Payout Policy
• Dividend Payments
• Dividend Theory
• Low Dividend Payout
• High Dividend Payout
• Dividend Policies
• UK and bangladesh based companies
• While growth affect positively
• The dividend policy of UK
• Determinants of dividend policy
• Dividend payout ratio
• Payout policy
• Fixed effect model
• Random effect model
• Dividend Payout Policy
• Nonfinancial Listed Companies in Vietnam
• Linter model
• Firms in Zimbabwe
• Corporate dividend policy under hyperinflation
• Dollarization by firms in Zimbabwe
• Bank specific factors
• Oil price
• Oil price on dividend policy
• Dividend yield
• Insurance companies
• Payout ratio
• Share price volatility
• Determinants of dividend payments of Non financial
• Ho Chi Minh stock xxchange
• Dividend policy listed companies
• Among accommodation services
• Electronic industry
• Debt ratio
• Electronic industries of Taiwan and US
• Influences of internationalization
• Dividend among the electronic industries
• Signaling theory
• Corporate operating characteristics
• Dividend policies signal
• Payment of dividends provides information
• Essays
• thesis
• internship reports
• project course
• graduate thesis
• Fundamentals of financial management
• Financial statement analysis
• Irrelevance of dividends
• Financial environments
• Stock prices
• Internal factors
• Stocks of Vietnamese firms
• Internal factors of the firm
• Quantile regression
• Variation of stock prices
• Vietnamese stock market
• Employing ordinary least squares
• Private sector banks in India
• Evaluation of dividend policy
• Selected public and private sector banks
• Board of Directors
• Profitable future investment proposals
• Summary of Phd thesis
• Investor sentiment
• Earnings quality
• Evidence from Vietnam
• Summary of the Doctoral thesis
• Dividend policy of listed seafood companies
• Listed seafood companies
• Stock market
• Finance accounting and Auditing
• Corporate value
• Tobin's Q
• GLS model
• Tax Influence Theory
• Business results
• Fair value
• Financial asset
• Fundamentals of corporate finance
• Tài chính doanh nghiệp
• Business organization