Materi Asistensi Dividen Credit to Ross

1. Pertemuan 6
Rabu, 14 November 2012

2. DIVIDENDS AND DIVIDEND POLICY

3. Introduction
• Dividend: A payment made out of a firm’s
earnings to its owner
• Distribution: a payment made by a firm to its
owner from sources other than current or
accumulated retained earning
• Jenis Dividend:
– Cash Dividend
– Stock Dividend
– Liquidating Dividendl

4. Dividend?
• Dividends are irrelevant?
• Dividends policy is irrelevant?
• Why do we pay lower dividend?
– Tax
– Flotation Cost
– Restriction
• Why do we pay higher dividend?
– Desire Income
– Uncertainty Resolution
– Tax

5. Dividend Policy
• Residual Dividend Approach
– Meet corporate’s investment needs and maintain
its desired debt to equity ratio
• Step
– Determine the amount of funds that can be
generated without selling new equity
– Decide whether or not a dividend will be paid

6. Residual Dividend Policy
• Example:
• Debt to Equity ratio = 1:2

7. Residual Dividend Policy

8. Dividend Stability
• Residual approach might lead to very unstable
dividend policy
• Ada dua tipe:
– Dividend kuartal disesuaikan dengan laba kuartal
– Dividend kuartal disesuaikan dengan laba tahunan

9. Dividend Stability

10. Compromise Dividend Policy
• Kebijakan dividend bergantung dari 5 goals:
– Avoid cutting back on positive NPV projects
– Avoid dividend cuts
– Avoid the need to sell equity
– Maintain target debt equity ratio
– Maintain target dividend payout ratio
• Tergantung bagaimana perusahaan
mengurutkan tujuan yang paling penting

11. Alternative: Stock Repurchase
• Perusahaan membeli saham dari para
shareholder  capital gain yang diperoleh
shareholder adalah dividen terselubung
• Example:
– Shares outstanding = 100,000
– Net Income = $ 49,000
– EPS = $ .49; PER = 20.4

12. Paid Cash Dividend
• Bayar cash dividend $ 300,000  $3 per share
• Price per share $10  $7
• Shareholder’s wealth (100 shares)
– ($7 x 100) + ($3 x 100) = $ 1,000
• EPS = $ .49; PER = 20.4  14.3

13. Repurchase Shares
• Repurchase 30,000 shares = $ 300,000
• Price per share $10 ($700,000 / 70,000 shares)
• Shareholder’s wealth (100 shares  70
shares)
– ($10 x 70) + ($10 x 30 ) – homemade dividend
• EPS = $.49  $.70; PER 20.4  14.3

14. Issues
• Real World Consideration
– Transaction Cost
– Tax Treatment
• Tax on dividend and tax on capital gain
• EPS
– EPS is just an accounting adjustment