财务管理-社团的财政讲义-6.ppt

Review Goal: Maximize Value of the Firm Past Topics Investment Decision (spending money) Financing Decision (raising money) Future Topics “Variations on a Theme” Today’s Topics Dividends Define (CB / Investment variation) Div Value of the Firm Capital Structure Define (financing variation) Cap Str Value of the Firm Dividends A payment made by a company to the shareholders of the company. 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 Terms Record Date Announcement Date Payment Date Ex-Dividend Div Value (MM Theory) Example: Assume ABC Co. has no extra cash, but declares a $1,000 dividend. They also require $1,000 for current investment needs. Using MM Theory, and given the following balance sheet information, show how the value of the firm is not altered when new shares are issued to pay for the dividend. Record Date Cash 1,000 Asset Value 5,000 Total Value 6,000 # of Shares 200 price/share $30 Div Value (MM Theory) Example: Assume ABC Co. has no extra cash, but declares a $1,000 dividend. They also require $1,000 for current investment needs. Using MM Theory, and given the following balance sheet information, show how the value of the firm is not altered when new shares are issued to pay for the dividend. Record Date Pmt Date Cash 1,000 0 Asset Value 5,000 5,000 Total Value 6,000 5,000 # of Shares 200 200 price/share $30 $25 Div Value (MM Theory) Example: Assume ABC Co. has no extra cash, but declares a $1,000 dividend. They also require $1,000 for current investment needs. Using MM Theory, and given the following balance sheet information, show how the value of the firm is not altered when new shares are issued to pay for the dividend. Record Date Pmt Date Post Pmt Cash 1,