Brealey Myers，公司金融原理 第七版PPT Chapter_16.pptVIP

Slides by Matthew Will Topics Covered How Dividends Are Paid How Do Companies 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 Dividend Payments Dividend Payments Dividend Payments Dividend Payments Dividend Payments The Dividend Decision 1. Firms have longer term target dividend payout ratios. 2. Managers focus more on dividend changes than on absolute levels. 3. Dividends changes follow shifts in long-run, sustainable levels of earnings rather than short-run changes in earnings. 4. Managers are reluctant to make dividend changes that might have to be reversed. The Dividend Decision Attitudes concerning dividend targets vary Dividend Change The Dividend Decision Dividend changes confirm the following Dividend Policy 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. Dividend Policy is Irrelevant Example - Assume Rational Demiconductor 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 9,000 Total Value 10,000 + New Proj NPV 2,000 # of Shares 1,000 price/share $12 Dividend Policy is Irrelevant Example - Assume Rational Demiconductor has no extra cash, but declares a $1,000 dividend. They also require $1,000 for current invest