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How does a firm's payout policy affect the value of the firm

How does a firm's payout policy affect the value of the firm?

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When a firm is distributing cash, it does so by means of paying cash in the form of dividends, or buying back shares of stock, which are then called treasury stock. The most common form of payment from a company is through cash dividend payments. In a typical market, the price of the stock will falls by the amount of the dividend paid. The main ...

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How does a firm's payout policy affect the value of the firm?

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