金融学基础语银实务3.0_PPT7.ppt

/articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * /articles/02/110802.asp * Dividend Policies To pay or not to pay dividends- rule of thumb If a company increases its dividends or pays a dividend for the ?rst time, this is viewed as good news—its share price increases.
If a company decreases its dividend or omits it completely, this is viewed as bad news—its share price declines. Outline Stock Repurchase Corporations have repurchased their common stock from their shareholders. A corporation repurchasing its own shares is effectively paying a cash dividend, with one important difference: taxes. Cash dividends are ordinary taxable income to the shareholder. A company’s repurchase of shares results in a capital gain or loss for the shareholder, depending on the price paid when they were originally purchased. If the shares are repurchased at a higher price, the difference may be taxed as capital gains, which may be taxed at rates lower than ordinary income. Stock Repurchase Methods of Repurchasing Stock a tender offer open market purchases a targeted block repurchase. Stock Repurchase （1）A tender offer A tender offer is an offer made to all shareholders, with a speci?ed deadline and a speci?ed number of shares the corporation is willing to buy back. The tender offer may be a ?xed price offer, where the corporation speci?es the price it is willing to pay and solicits purchases of shares of stock at that price. A tender offer may also be conducted as a Dutch auction in which the corporation speci?es a minimum and a maximum price, soliciting bids from shareholders for any price within this range at which they are willin