Session 23: Dividends and Potential Dividends

In this quiz-shortened session, we started by looking at one good reason for paying dividends, including having an investor base that likes dividends, one iffy reason (dividends as a signal) and one borderline reason (that you can rip of lenders). We then looked at three questions that need to be asked in assessing dividend policy, starting with how much a company can afford to return to stockholders (FCFE), then looking at how much is actually returned in dividends and buybacks. Slides: https://pages.stern.nyu.edu/~adamodar/podcasts/cfspr23/session23slides.pdf Post class test: https://pages.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session23test.pdf Post class test solution: https://pages.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session23soln.pdf Learn more about your ad choices. Visit megaphone.fm/adchoices