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Fundamentals of Corporate Finance, Second Edition
book

Fundamentals of Corporate Finance, Second Edition

by Robert Parrino, David S. Kidwell, Thomas W. Bates
October 2011
Beginner
778 pages
36h 16m
English
Wiley
Content preview from Fundamentals of Corporate Finance, Second Edition

17

Dividends, Stock Repurchases, and Payout Policy

image

Praxair, Inc.

Learning Objectives

image Explain what a dividend is, and describe the different types of dividends and the dividend payment process. Calculate the expected change in a stock's price around an ex-dividend date.

image Explain what a stock repurchase is and how companies repurchase their stock. Calculate how taxes affect the after-tax proceeds that a stockholder receives from a dividend and from a stock repurchase.

image Discuss the benefits and costs associated with dividend payments and compare the relative advantages and disadvantages of dividends and stock repurchases.

image Define stock dividends and stock splits and explain how they differ from other types of dividends and from stock repurchases.

image Describe factors that managers consider when setting the dividend payouts for their firms.

In July 2010, managers at Praxair, Inc., an international ...

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Publisher Resources

ISBN: 9780470876442Purchase book