文档介绍：chapter 18 Dividend Policy:Does It Matter?
Corporate Finance Ross ?? Westerfield ?? Jaffe
Sixth Edition
18
Chapter Eighteen
Dividend Policy:
Does It Matter?
Prepared by
Gady Jacoby
University of Manitoba
and
Sebouh Aintablian
American University of Beirut
Chapter Outline
183>.1 Different Types of Dividends
Standard Method of Cash Dividend Payment
The Benchmark Case: An Illustration of the Irrelevance of Dividend Policy
Taxes, Issuance Costs, and Dividends
Repurchase of Shares
Expected Return, Dividends, and Personal Taxes
Real World Factors Favouring a High Dividend Policy
A Resolution of Real-World Factors?
What We Know and Do Not Know About Dividend Policy
Summary and Conclusions
Different Types of Dividends
panies pay a regular cash dividend.
panies often pay quarterly.
Sometimes firms will throw in an extra cash dividend.
The extreme case would be a liquidating dividend.
panies will declare stock dividends.
No cash leaves the firm.
The firm increases the number of shares outstanding.
panies declare a dividend in kind.
Wrigley’s Gum sends around a box of chewing gum.
Dundee Crematoria offers shareholders discounted cremations.
Standard Method of Cash Dividend Payment
Record Date - Person who owns stock on this date received the dividend.
Ex-Dividend Date - Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
Cash Dividend - Payment of cash by the firm to its shareholders.
Procedure for Cash Dividend Payment
25 Oct.
1 Nov.
2 Nov.
6 Nov.
7 Dec.
Declaration Date
Cum-dividend Date
Ex-dividend Date
Record Date
Payment Date
…
Declaration Date: The board of directors declares a payment of dividends.
Cum-Dividend Date: The last day that the buyer of a stock is entitled to the dividend.
Ex-Dividend Date: The first day that the seller of a stock is entitled to the dividend.
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