Course Objective

Welcome to Part 5 of the 'Money Flow' Module!

This section will introduce using the firm's financial resources to ensure business stability - The impact of the dividend decision and the nature of the firm's policy. 

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By the time you are finished with Part 5, you should understand that following:

• How the firm's dividend decision can impact its value—the tradeoff between cash dividends today versus growth in the future

• How the firm's dividend decision impacts its external financing requirement

• Dividend theories--Whether or not dividends and the dividend policy affects firm value

• The signaling and informational effects of dividend policies

• Various real-world dividend policies in practice

• Legal and institutional factors that can influence a distribution policy

• Non-cash dividend distributions—stock dividends, stock splits, and stock repurchases

• Dividend reinvestment plans (DRIPs)

 

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