Payout policy

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Across
  1. 3. firm repurchases shares directly from major shareholder
  2. 5. In perfect capital markets, holding fixed the investment policy of a firm, the firm’s choice of dividend policy is irrelevant and does not affect the initial share price
  3. 7. The date on which shareholders must be on the company's books to receive a declared dividend
  4. 9. Changes in dividends reflect management’s expectations about future earnings
  5. 10. the most common transaction type of share repurchases
Down
  1. 1. a firm’s dividend policy is optimized for the tax preference of its investors
  2. 2. Firms adjust dividend levels infrequently, creating a stable payout pattern over time, even as earnings fluctuate
  3. 4. The strategy a firm uses to distribute free cash flow, either through dividends or share repurchases
  4. 6. the date on which the board authorizes the dividend
  5. 8. when firms list different prices and shareholders indicate how many shares they are willing to sell at each price