Xem mẫu
Chapter 12: Dividend and Share
Repurchase Decisions
Copyright 2006 McGraw-Hill Australia Pty Ltd
PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 12–1
Prepared by Dr Buly Cardak
Learning Objectives
• Define ‘dividend policy’ and understand some institutional features of dividends and share repurchases.
• Explain why dividend policy is irrelevant to shareholders’ wealth in a perfect capital market with no taxes.
• Outline the imputation and capital gains tax systems and explain their effects on returns to investors.
Copyright 2006 McGraw-Hill Australia Pty Ltd
PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 12–2
Prepared by Dr Buly Cardak
Learning Objectives (cont.)
• Identify the factors that may cause dividend policy to be important.
• Be familiar with the nature of share buybacks, dividend reinvestment plans and dividend election schemes.
• Outline the main factors that influence companies’ dividend policies.
Copyright 2006 McGraw-Hill Australia Pty Ltd
PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 12–3
Prepared by Dr Buly Cardak
Dividend Policy
• Business Decisions – Investment
– Financing – Dividend
• Dividend Policy
– Determining how much of a company’s profit is to be paid to shareholders as dividends and how much is to be retained.
Copyright 2006 McGraw-Hill Australia Pty Ltd
PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 12–4
Prepared by Dr Buly Cardak
Is there an Optimal Dividend Policy?
• In a perfect capital market, dividend policy has no impact on shareholders’ wealth and is, therefore, irrelevant.
• Introducing capital market imperfections, the following views exist:
– Dividend policy does not matter. – A high dividend policy is best.
– A low dividend policy is best.
Copyright 2006 McGraw-Hill Australia Pty Ltd
PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 12–5
Prepared by Dr Buly Cardak
...
- tailieumienphi.vn
nguon tai.lieu . vn