第十八章股利政策为什么相关[26p].ppt

Chapter Outline 18.1 Different Types of Dividends 18.2 Standard Method of Cash Dividend Payment 18.3 The Benchmark Case: An Illustration of the Irrelevance of Dividend Policy 18.4 Taxes, Issuance Costs, and Dividends 18.5 Repurchase of Stock 18.6 Expected Return, Dividends, and Personal Taxes 18.7 Real World Factors Favoring a High Dividend Policy 18.8 A Resolution of Real-World Factors? 18.9 What We Know and Do Not Know About Dividend Policy 18.10 Summary and Conclusions 18.1 Different Types of Dividends Many companies pay a regular cash dividend. Public companies often pay quarterly. Sometimes firms will throw in an extra cash dividend. The extreme case would be a liquidating dividend. Often companies will declare stock dividends. No cash leaves the firm. The firm increases the number of shares outstanding. Some companies declare a dividend in kind. Wrigley’s Gum sends around a box of chewing gum. Dundee Crematoria offers shareholders discounted cremations. 18.2 Standard Method of Cash Dividend Payment Procedure for Cash Dividend Payment Price Behavior around the Ex-Dividend Date In a perfect world, the stock price will fall by the amount of the dividend on the ex-dividend date. 18.3 The Benchmark Case: An Illustration of the Irrelevance of Dividend Policy A compelling case can be made that dividend policy is irrelevant. Since investors do not need dividends to convert shares to cash they will not pay higher prices for firms with higher dividend payouts. In other words, dividend policy will have no impact on the value of the firm because investors can create whatever income stream they prefer by using homemade dividends. Homemade Dividends Bianchi Inc. is a $42 stock about to pay a $2 cash dividend. Bob Investor owns 80 shares and prefers $3 cash dividend. Bob’s homemade dividend strategy: Sell 2 shares ex-dividend Dividend Policy is Irrelevant Since investors do not need dividends to convert shares to cash, dividend policy will