Busy. Please wait.
or

show password
Forgot Password?

Don't have an account?  Sign up 
or

Username is available taken
show password

why

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.

By signing up, I agree to StudyStack's Terms of Service and Privacy Policy.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.

Remove ads
Don't know
Know
remaining cards
Save
0:01
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the "Know" box, the DOWN ARROW key to move the card to the "Don't know" box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

"Know" box contains:
Time elapsed:
Retries:
restart all cards




share
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Chapter 13 dividend

QuestionAnswer
Dividends cash distributions made to stockholders from the firm's earnings
optimal dividend policy strikes a balance between current dividends and future growth and maximizes the firms stock price
Dividend irrelevance thoery states the firms dividend policy has no effect on either or cost of capital
dividend relevance theory theory that the value of the firm is affected by the dividend policy.
information content(signaling) hypothesis the theory that investors regard dividend changes as signals of mgmt earnings forecasts
Clientele effect to attract the type of investor who likes its dividend policy
Free cash flow hypothesis All else is equal, the firm should distribute any earningsthat cannot be reinvested at a rate at least greater then the investors required rate.
residual dividend policy Dividend only paid when earnings are greater than what is needed to finance the equity portion of the firm's optimal budget for the year.
stable,predicitable dividends payment of a specific dividend each year, or periodically increasing dividend
constant payout ratio payment of a constant percentage of earnings as dividends each year
extra dividend a supplement dividend paid in years when a firm has excess funds to distribute
Declaration Date The day the dividend becomes a Liability
Holder-of-record-Date The date the company determine who recieves the dividend
Ex-Dividend Date The date dividende stop, New purchasters dont receive dividends
Payment Date The Date the firm makes the dividend Payment
Dividned re investment Plan (DRIP) Enables stockholders to automatically reinvest dividends recieved back into the stock of the paying firm.
Stock Split A action taken by a firm to increase the # of shares outstanding which decrease the per share stock price.
Stock Dividend dividends paid as additional shares of stock instead of cash
Created by: 5000587