chapter 18 Dividend Policy(财务管理,Gregory A. Kuhlemeyer)概要1.ppt

Chapter 18 Dividend Policy Dividend Policy Procedure for Dividend Payment Does Dividend Policy Matter? Dividend Policy Stock Dividends and Stock Splits Stock Repurchase Administrative Considerations Procedure for Dividend Payment Declaration Date -- The date that the board of directors announces the amount and date of the next dividend. Payment Date -- The date when the corporation actually pays the declared dividend. Procedure for Dividend Payment Record Date -- The date, set by the board of directors when a dividend is declared, on which an investor must be a shareholder of record to be entitled to the upcoming dividend. The board of directors met on May 8th to declare a dividend payable to shareholders on June 15th to the shareholders of record on May 31st. Procedure for Dividend Payment Ex-dividend Date -- The first date on which a stock purchaser is no longer entitled to the recently declared dividend. The buyer and seller of the shares have several days to settle (pay for the shares or deliver the shares). The brokerage industry has a rule that new shareholders are entitled to dividends only if they purchase the stock at least two business days prior to the record date. Irrelevance of Dividends MM contend that the effect of dividend payments on shareholder wealth is exactly offset by other means of financing. The dividend plus the “new” stock price after dilution exactly equals the stock price prior to the dividend distribution. Irrelevance of Dividends MM and the total-value principle ensures that the sum of market value plus current dividends of two firms identical in all respects other than dividend-payout ratios will be the same. Investors can “create” any dividend policy they desire by selling shares when the dividend payout is too low or buying shares when the dividend payout is excessive. Relevance of Dividends Uncertainty surrounding future company profitability leads certain investors to prefer the certainty of current dividends. Investors prefe