Chapter14Divide
dsa
dDivide
dPolicy
CHAPTER14Divide
dsa
dDivide
dPolicy
IDEFINITIONS
TopicDIVIDENDS1Payme
tsmadeoutofafirmsear
i
gstoitsow
ersi
theformofcashorstockarecalled
ADivide
dsBDistributio
sCSharerepurchasesDPayme
tsi
ki
dEStocksplitsA
swerA
TopicDISTRIBUTIONS2Payme
tsmadebyafirmtoitsow
ersfromsourcesothertha
curre
toraccumulatedear
i
gsare
calledADivide
dsBDistributio
sCSharerepurchasesDPayme
tsi
ki
dEStocksplitsA
swerB
TopicREGULARCASHDIVIDENDS3Acashpayme
tmadebyafirmtoitsow
ersi
the
ormalcourseofbusi
essiscalleda
ASharerepurchaseBLiquidati
gdivide
dCRegularcashdivide
dDSpecialdivide
dEExtracashdivide
dA
swerC
TopicSPECIALDIVIDENDS4Acashpayme
tmadebyafirmtoitsow
ersasaresultofao
etimeeve
tiscalleda
ASharerepurchaseBLiquidati
gdivide
dCRegularcashdivide
dDSpecialdivide
dEExtracashdivide
dA
swerD
336
RossWesterfieldJorda
Esse
tialsofCorporateFi
a
ce4e
fChapter14Divide
dsa
dDivide
dPolicy
TopicLIQUIDATINGDIVIDENDS5Acashpayme
tmadebyafirmtoitsow
erswhe
someofthefirmsassetsaresoldoffiscalleda
ALiquidati
gdivide
dBRegularcashdivide
dCSpecialdivide
dDExtracashdivide
dA
swerA
TopicDECLARATIONDATE6Thedateo
whichtheboardofdirectorspassesaresolutio
authorizi
gpayme
tofadivide
dto
theshareholdersisthe____________dateAexrightsBexdivide
dCrecordDpayme
tEdeclaratio
A
swerE
TopicEXDIVIDENDDATE7Thedatebeforewhicha
ewpurchaserofstockise
titledtoreceiveadeclareddivide
dbuto
or
afterwhichshedoes
otreceivethedivide
discalledthe____________dateAexrightsBexdivide
dCrecordDpayme
tEdeclaratio
A
swerB
TopicDATEOFRECORD8Thedatebywhichastockholdermustberegisteredo
thefirmsrollashavi
gshareow
ershipi
ordertoreceiveadeclareddivide
discalledthe_______________AdateofexrightsBdateofexdivide
dCdateofrecordDdateofpayme
tEdateofdeclaratio
A
swerC
TopicDATEOFPAYMENT9Thedateo
whichthefirmmailsoutitsdeclareddivide
dsiscalledthe_______________
AdateofexrightsBdateofexdivide
dCdateofrecordDdateofpayme
tEdateofdeclaratio
A
swerD
RossWesterfieldJorda
Esse
tialsofCorporateFi
a
ce4e
337
fChapter14Divide
dsa
dDivide
dPolicy
TopicHOMEMADEDIVIDENDS10Theabilityofshareholderstou
dothedivide
dpolicyofthefirma
dcreatea
alter
ative
divide
dpayme
tpolicyviarei
vesti
gdivide
dsorselli
gsharesofstockiscalledaAPerfectforesightmodelBMMPropositio
ICCapitalstructureirreleva
cyDHomemadeleverageEHomemadedivide
dpolicyA
swerE
TopicINFORMATIONCONTENTEFFECT11Themarketsreactio
tothea
ou
cer