Universitas Pelita Harapan

Corporate Finance II
Week 15
Summary of
Dividend, Mergers, Forex, Financial Planning.

Lecture: Dr. Ferdinand Butarbutar., SE., MBA.

 Even Semester: January 10 – May 2019
Dividend Policy – Chapter 17
1. Three theories of dividend policy:
– Dividend irrelevance: Investors don’t
care about payout.
– Bird-in-the-hand: Investors prefer a high
payout.
– Tax preference : Investors prefer a low
payout.
2.There are four stages in dividend policy
a. Announces date
b. Ex Dividend Date
c. Record Date
d. Payable Date
3. The objective of company strategy regarding:
a. Repurchase Stock
b. Stock Splits
c. Stock Spin Off
d. Dividend Smoothing
e. Dividend Signaling
f. Friendly Take over
 g. Hostile Take Over

Class Exercises: Ingat tugas-tugas

Mergers and Acquisitions – Chapter 22

1. Characteristics of Mergers Waves:
a. In 1960: managerial expertize becomes an
important issues, unskilled labor
b. In 1980: bust-up takeovers or hostile
unrelated business especially a poorly
business.
c. In 1980: bust-up takeovers or hostile
unrelated business especially a poorly
business.
a. In 1990: strategic in global activities.
b. In 2000: market consolidation – the product
will be complete globally standarized.
2.Types of Mergers
a. Horizontal merger: Target and acquirer are
in the same industry (pharmacy and related
to pharmacy).
 b. Vertical merger: Target’s industry buys or
sells to acquirer’s industry (Manufacturing
to suppliers).
c. Conglomerate merger:Target and bidder

are in different industry (Phaarmacy, Oil,

Mine, Chemicals).
(Payment for target shares: stock swap, cash
payments).
3. What is actually the reasons to mergers?
a. Synergies
b.Economies of scale
c. Vertical Integration
d.Expertise
e.Monopoly Gains
f. Efficiency Gains
g.Tax Savings
h.Diversification
i. Managerial Motives
4. The way how to defense Merger or
Acquisition
a.Poison Pills
b.Staggered Boards
 c. White Knights
d.Golden Parachutes
e.Recapitalization

Class Exercise: Ingat tugas Chapter 10 Stock

Valuation

Multinational and Forex – Chapter 23

Explain clearly those terminologies and
give your own samples
a. Direct Quotation vs Indirect Quotation
b. Cross rates
c. Spot rates and Forward rates
d. Hedging
e. Interest Rate Rate Parity
f. Purchasing Power Parity

Class Exercises: ingat tugas-tugas.