Download or read book The Dividend Puzzle Unpuzzled written by Srdjan D. Stojanovic and published by . This book was released on 2007 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: A claim of solving the dividend puzzle, as formulated by F. Black, is made. Various stock pricing formulas are established, extending substantially the classical Miller-Modigliani theory of valuation of shares in a way to contradict their main conclusion that dividends are irrelevant. Indeed, the main stock pricing formula obtained implies that if the company's costs depend on the available cash, then dividends affect the stock pricing function in a substantial manner. On the other hand, if the company's costs are independent of the available cash, if the dividend tax rate is constant, and under a further technical condition, the established formula is consistent with the Miller-Modigliani's conclusion of dividend irrelevancy. The presented theory is in the context of Miller-Modigliani's stream of dividends approach to valuation of shares, facilitated by the latest developments in the Black-Scholes type pricing theory for incomplete multivariable markets. Various cash flows are modeled, some using Ito SDEs, so that the value of the company is not assumed to be tradable, yielding market incompleteness. In spite of market incompleteness, under some simplifying assumptions, referred to as the Basic Equity Model, the established stock pricing formulas yield unique prices, i.e., prices independent of the investor's risk aversion. Some more general models when this property of prices does not hold are considered as well. The intrinsic non-uniqueness of fair stock prices in such cases is settled by choosing the value of the investor's HARA risk aversion parameter, while if the CARA wealth utility function is used, fair prices remain unique.

Download or read book The dividend puzzle written by Reinhard Windisch and published by GRIN Verlag. This book was released on 2008-03-20 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2005 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 2,0, University of Graz, language: English, abstract: For many years economists and financial experts have argued about the „dividend puzzle“, i.e. about the impact of dividends on stock prices. Describe this puzzle, explain why it appears so intractable, and state what might be done to bring us all closer to an acceptable solution.

Download or read book The Dividend Puzzle written by Snehal Banerjee and published by . This book was released on 2002 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The New Dividend Puzzle written by William W. Bratton and published by . This book was released on 2010 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dividend puzzle of ec ...

Download or read book A Piece to the Dividend Puzzle written by Johannes Raaballe and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Is the Dividend Puzzle Solved written by Maria Rosa Borges and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Dividend Puzzle and Tax written by Chris Jones and published by . This book was released on 1991 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The dividend puzzle written by J. E. Broyles and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Dividend Puzzle written by Janette Rutterford and published by . This book was released on 1994 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Stock Dividend Puzzle written by Mark Jonathon Paul Anson and published by . This book was released on 1990 with total page 237 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Dividend Puzzle written by Jack Broyles and published by . This book was released on 1996 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Tax policy and the dividend puzzle written by B. Douglas Bernheim and published by . This book was released on 1990 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Neutral and Indifference Portfolio Pricing Hedging and Investing written by Srdjan Stojanovic and published by Springer Science & Business Media. This book was released on 2011-08-30 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is written for quantitative finance professionals, students, educators, and mathematically inclined individual investors. It is about some of the latest developments in pricing, hedging, and investing in incomplete markets. With regard to pricing, two frameworks are fully elaborated: neutral and indifference pricing. With regard to hedging, the most conservative and relaxed hedging formulas are derived. With regard to investing, the neutral pricing methodology is also considered as a tool for connecting market asset prices with optimal positions in such assets. Srdjan D. Stojanovic is Professor in the Department of Mathematical Sciences at University of Cincinnati (USA) and Professor in the Center for Financial Engineering at Suzhou University (China).

Download or read book The Dividend Puzzle written by Amanda Boyle and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Towards a Solution to the Dividend Puzzle written by M. W. A. Fleming and published by . This book was released on 1990 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Payout Policy Irrelevance and the Dividend Puzzle written by Harry DeAngelo and published by . This book was released on 2007 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why do firms make large cash payouts, given the tax advantages of retention? The dividend puzzle is based on the premise that low or near-zero payouts are optimal (although not uniquely so) in frictionless markets, hence should be strictly optimal when payouts are taxed. This logic reflects misunderstandings about the nature of payout policy irrelevance in frictionless markets and the implications of adding personal taxes to the standard finance model. In frictionless markets, all optimal policies require substantial payouts. Those with low or near-zero distributions are strictly sub-optimal, and are infeasible given rational expectations. Payout policy irrelevance does not carry over to general equilibrium, so it is inappropriate to conclude that many or most firms can make low payouts for extended periods. Imposition of personal taxes perturbs the frictionless equilibrium on the margin, but does not alter the implication that all optimal policies require substantial payouts. In short, the standard finance model (with or without taxes) implies, requires, and predicts the large payouts observed in the world.

Download or read book Myopia the dividend Puzzle and Share Prices written by S. J. Nickell and published by . This book was released on 1987 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: