chap018 - Chapter 18 DIVIDENDS AND OTHER PAYOUTS SLIDES...

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Chapter 18 DIVIDENDS AND OTHER PAYOUTS SLIDES CHAPTER WEB SITES Section Web Address 18.2 www.companyboardroom.com 18.9 www.stocksplits.net End-of-chapter material www.mhhe.com/edumarketinsight 18.1 Key Concepts and Skills 18.2 Chapter Outline 18.3 Different Types of Dividends 18.4 Standard Method of Cash Dividend 18.5 Procedure for Cash Dividend 18.6 Price Behavior 18.7 The Irrelevance of Dividend Policy 18.8 Homemade Dividends 18.9 Dividend Policy is Irrelevant 18.10 Dividends and Investment Policy 18.11 Repurchase of Stock 18.12 Stock Repurchase versus Dividend 18.13 Stock Repurchase versus Dividend 18.14 Stock Repurchase versus Dividend 18.15 Share Repurchase 18.16 Personal Taxes and Dividends 18.17 Firms without Sufficient Cash 18.18 Firms with Sufficient Cash 18.19 Taxes and Dividends 18.20 Real-World Factors Favoring High Dividends 18.21 The Clientele Effect 18.22 What We Know and Do Not Know 18.23 Stock Dividends 18.24 Stock Splits 18.25 Quick Quiz
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A-215 CHAPTER 18 CHAPTER ORGANIZATION 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 Current Policy: Dividends Set Equal to Cash Flow Alternative Policy: Initial Dividend Is Greater Than Cash Flow The Indifference Proposition Homemade Dividends A Test Dividends and Investment Policy 18.4 Repurchase of Stock Dividend versus Repurchase: Conceptual Example Dividends versus Repurchases: Real-World Considerations 18.5 Personal Taxes and Dividends Firms without Sufficient Cash to Pay a Dividend Firms with Sufficient Cash to Pay a Dividend Summary on Personal Taxes 18.6 Real-World Factors Favoring a High-Dividend Policy Desire for Current Income Behavioral Finance Agency Costs Information Content of Dividends and Dividend Signaling 18.7 The Clientele Effect: A Resolution of Real-World Factors? 18.8 What We Know and Do Not Know about Dividend Policy Corporate Dividends Are Substantial Fewer Companies Pay Dividends Corporations Smooth Dividends Payouts Provide Information to the Market A Sensible Payout Policy Some Survey Evidence about Dividends 18.9 Stock Dividends and Stock Splits Some Details about Stock Splits and Stock Dividends Value of Stock Splits and Stock Dividends Reverse Splits
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CHAPTER 18 A-216 ANNOTATED CHAPTER OUTLINE Slide 18.0 Chapter 18 Title Slide Slide 18.1 Key Concepts and Skills Slide 18.2 Chapter Outline Lecture Tip: Can the wrong dividend policy bankrupt a firm? The following anecdote suggests that dividend policy can play a role in a company’s downfall. The automobile industry was quite prosperous in the 1920s, but was hit hard by the depression. Studebaker Corporation, which was relatively weak to begin with, suffered more than other automotive manufacturers. Part of the reason for its financial problems was the belief by the firm’s president that dividends alone could increase the value of the stock. He implemented a dividend policy that increased the dividend payout ratio from 43
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chap018 - Chapter 18 DIVIDENDS AND OTHER PAYOUTS SLIDES...

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