Lecture 4- The dividend decision

Dividend- made out of firm’s to its , in form of either or

Distribution- made by to its from sources other than or

Cash dividend- made by to its in the course of

Stock dividend- made by a to its in the form of , of each

Stock split- in firm’s without any in

Standard method of cash dividend payment is followed by followed by followed by

Declaration date- payment of

Ex-dividend date- becomes on date is entitled to keep ; under stock exchange , shares are on & after before date

Record date- are distributable to of on date

Payment date- are mailed to of

Around ex-dividend date, will fall by the that has been because it makes it that will be paid to all that have bought shares before

Trading range- The between & at which an is traded

Reverse split- in which firm’s number of is

Dividend policy- Refers to of

Share price is of dividends- shareholders will be as to how is made up ( of each year’s )

Homemade dividend policy- dividend policy created by who dividend by or

Share repurchase- , by a , of its of equity; also known as a

One approach company can follow to do share repurchase is . This involves like other investors but not it’s its shares

Another approach company can follow to do share repurchase is . This involves going to all its & offering to pro-rata number of from each of them at (normally than market price)

Third approach company can follow to do share repurchase is . This involves going to number of & them to their shares at

Five real world considerations about dividend vs repurchase are: , , , &

Three real world factors affecting dividend pay-out that favour low-dividend pay-out are: , &

Two real world factors affecting dividend pay-out that favour high-dividend pay-out are: &

Information content of dividends- to change in

Clientele effect- that equities attract based on & resulting