PPT-Dividends and Dividend Policy

Chapter 17 Dividend cash paid out of earnings Distribution cash payment from sources other than earnings Cash Dividends amp Dividend payment Dividend forms Regular cash dividend cash payments made directly to stockholders usually each quarter. Dividend Policy. After Studying Chapter 18, you should be able to:. Understand the dividend retention versus distribution dilemma faced by the firm. . Explain the Modigliani and Miller (M&M) argument that dividends are irrelevant. . Historical View. Illustrated by the arguments of Gordon (1959) - more dividends = more value. Follows from the discounted dividend approach to valuing a firm:. Historical View. Gordon argued that retained earnings rather than current dividends made the cash flow stream for the shareholder riskier.. Personal . Taxes. The cash flows to investors are typically taxed twice. Once at the corporate level and then investors are taxed again when they receive their interest or . dividend . payment. . For individuals:. Chapter 17. Chapter Outline. 17.1 Cash Distributions to Shareholders . 17.2 Dividends Versus Share Repurchase in a Perfect Capital Market. 17.3 The Tax Disadvantage of Dividends. 17.4 Payout Versus Retention of Cash. : . Dividends, Retained Earnings, and Income Reporting. 14. Learning Objectives. Explain how to account for . cash dividends. .. Explain how to account for . stock dividends . and splits.. Prepare and analyze a . Owners’ Equity – Preferred Stock. Chapter 11. McGraw-Hill/Irwin. © 2009 The McGraw-Hill Companies, Inc.. Preferred Stock. Preference over common stock. Usually has. no voting rights. Usually has a fixed dividend rate. Larry Schrenk, Instructor. Video 49 (Topic 9.4):. Stock Splits, Stock Dividends, and DRIP’s. Topics. Stock Splits. Stock Dividends. Dividend Reinvestment Plans (DRIP). Stock Splits. Stock . Splits. 22. 21. .1. . Explain what a cash dividend payment is, how dividend payments are made, and why dividend payments are different from interest payments.. 21. .2. . Describe typical dividend payouts and explain the importance of dividends.. Chapter 11. Copyright © 2016 McGraw-Hill Education.  All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.. Wild, Shaw, and . Chiappetta. Financial & Managerial Accounting. AN EXPERIENTIAL EXERCISE IN . DETERMINING A FIRM’S PAYOUT POLICY. Professor Robert M. Hull (Corresponding Author). rob.hull@washburn.edu (R. Hull). Professor William Roach. Brenneman Professor Robert A. Weigand. The Power of Compound Interest. "Compound interest is the eighth wonder of the world. . He who understands it, earns it ... he who doesn't ... pays it." . Albert Einstein. Albert. Einstein when asked what he considered to be the most powerful force in the universe answered: “Compound interest! What you have become is the price you paid to get what you used to want.” . When a company makes money (has positive earnings), it can do two things with that money (often a combination of these two things. ):. Reinvest the earnings into the company (Retained earnings). Payout the earnings to the owners (the stockholders) as . CNPJ N 92791243/0001-03 NIRE N 43300002799 PUBLIC COMPANYNOTICETOSHAREHOLDERS PAYMENT OF DIVIDENDSWe inform you Mr and Mrs shareholders that we shall pay the dividendapproved on May 29 2020 MEMPHIS TN Apr 27 2021 First Horizon Corporation NYSE FHN or the Company today announced that its board of directors has declared a quarterly cash dividend on the Companys common stock of 015 per sha