FIL 240 Lecture22Outline of Last Lecture I. Cash Dividendsa. Payout Ratiob. Dividend Yieldc. Declaration dated. Date of recorde. Price Ex-dividendII. Theoriesa. Residualb. Clientelec. Signalingd. Bird-in-handIII. Types of Dividendsa. Stock Dividendb. Stock SplitOutline of Current Lecture I. Working Capital definitiona. Net working capitalb. Rulec. Graphd. Aggressive short-term debte. Conservativef. ModerateCurrent LectureWorking Capital PolicyI. Working Capital – current assets or liquid assets to be used within the yeara. Net working capital – current assets – current liabilitiesb. Having more capital is more costly. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.c.Temp. current assets Permanent current assetsd. Aggressive short-term debt – expensive, but flexible; all of permanent current assets and temporary current assets (like a line of credit at a bank)e. Conservative – use long-term debt to finance everything, fixed assets and currentassets; cheaper, finances temp. current, permanent current, and fixed assetsf. Moderate – long-term debt finances fixed assets and permanent current
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