İŞLETME FİNANSI II

The date two business days before the date of record is called ex-dividend date.

Stock repurchase ist he distribution of earnings to shareholders by repurchasing shares of its stock.

Tender Offer; The company can repurchase a number of shares through a tender offer in which it offers to buy shares at a specified price.

A company can repurchase stock to minimize the “dilution effect” associated with exercising the stock options that have been given to employees as bonuses.

Stock split is an action taken by a company to increase the number of shares outstanding.

The dividend irrelevance theory states that a company’s dividend policy has no effect on whether its value or its cost of capital.

There are no taxes and transaction costs

Bird-in-the-hand dividend theory states that a company’s value will be maximized by setting a high dividend payout ratio.

The clientele effect is a tendency of a company to attract a set of investors whose particular needs for current versus future cash flow match with company’s dividend payouts.