文档介绍：Principles of Corporate Finance Chapter 16 The Dividend Controversy
Principles of Corporate Finance Chapter 16 The Dividend Controversy
Lu Yurong
The Dividend Controversy
Principles of Corporate Finance
Seventh Edition
Richard A1>. Brealey
Stewart C. Myers
Chapter 16
McGraw Hill/Irwin
Topics Covered
How Dividends Are Paid
How panies Decide on Dividend Payments?
Information in Dividends and Stock Repurchases
The Dividend Controversy
The Rightists
Taxes and the Radical Left
The Middle of the Roaders
Types of Dividends
Cash Div
Regular Cash Div
Special Cash Div
Stock Div
Stock Repurchase (3 methods)
1. Buy shares on the market
2. Tender Offer to Shareholders
3. Private Negotiation (Green Mail)
Dividend Payments
Cash Dividend - Payment of cash by the firm to its shareholders.
Dividend Payments
Cash Dividend - Payment of cash by the firm to its shareholders.
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.
Dividend Payments
Cash Dividend - Payment of cash by the firm to its shareholders.
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.
Record Date - Person who owns stock on this date received the dividend.
Dividend Payments
Stock Dividend - Distribution of additional shares to a firm’s stockholders.
Dividend Payments
Stock Dividend - Distribution of additional shares to a firm’s stockholders.
Stock Splits - Issue of additional shares to firm’s stockholders.
Dividend Payments
Stock Dividend - Distribution of additional shares to a firm’s stockholders.
Stock Repurchase - Firm buys back stock from its shareholders.
Stock Splits - Issue of additional shares to firm’s stockholders.
The Dividend Decision
1. Firms have longer term target dividend payout ratios.
2. Managers focus more on dividend changes t