Session 23: Potential Dividends and Actual Cash Returned

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 and finally assessing whether you trust management enough to give them the freedom to set dividend policy.
Quiz 3, with solution: https://www.stern.nyu.edu/~adamodar/p...
Slides: https://www.stern.nyu.edu/~adamodar/p...
Post class test: https://www.stern.nyu.edu/~adamodar/p...
Post class test solution: https://www.stern.nyu.edu/~adamodar/p...