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 GLOBAL GLOBAL
EDITION EDITION

EDITION
G LO B A L
Now in its fifteenth edition, Principles of Managerial Finance continues to help students

Principles of

Principles of Managerial Finance

develop a variety of skills—Excel modeling, ethical reasoning, and critical thinking—to
succeed in a rapidly changing financial and managerial environment. A strong pedagogy and
generous use of examples, including personal finance examples, make this text an easily
accessible resource for in- and out-of-class learning.

New to This Global Edition

• Tax Cuts and Jobs Act of 2017, which made sweeping changes to the American corporate and
personal tax codes, has been included
Managerial Finance
• Highlights on how tax changes may alter firms’ incentives in a variety of ways FIFTEENTH EDITION
• Content and feature updates throughout the text and inclusion of global examples in the
end-of-chapter homework assignments—from Britain, Scotland, Thailand, and Singapore—reflect
global application in managerial finance Chad J. Zutter • Scott B. Smart
• MyLab Finance now includes the following features
° New chapter introduction videos and animations that explain the importance of the
chapter content within the context of managerial finance
° New and updated solution videos of the author discussing or solving in-chapter examples

This is a special edition of an established title widely

used by colleges and universities throughout the world.
Pearson published this exclusive edition for the benefit

FIFTEENTH
of students outside the United States and Canada. If you

EDITION
purchased this book within the United States or Canada,
you should be aware that it has been imported without
the approval of the Publisher or Author.

Pearson Global Edition

Smart
Zutter

Zutter_15_129226151X_Final.indd 1 14/08/18 8:28 PM

 Dedicated to our good friend and mentor,
Dr. Lawrence J. Gitman,
who trusted us as coauthors and successors
of Principles of Managerial Finance.
CJZ
SBS

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 Brief Contents

Contents 9
About the Authors 29
Preface 31
Acknowledgments 44

PART 1 Introduction to Managerial PART 6 Long-Term Financial

Finance 47 Decisions 597
1 The Role of Managerial Finance 48 13 Leverage and Capital Structure 598
2 The Financial Market Environment 87 14 Payout Policy 652

PART 2 Financial Tools 121 PART 7 Short-Term Financial

3 Financial Statements and Ratio Analysis 122
Decisions 691
4 Long- and Short-Term Financial 15 Working Capital and Current Assets
Planning 188 Management 692
5 Time Value of Money 235 16 Current Liabilities Management 735

PART 3 Valuation of Securities 301 PART 8 Special Topics in Managerial

Finance 771
6 Interest Rates and Bond Valuation 302
7 Stock Valuation 351 17 Hybrid and Derivative Securities 772
18 Mergers, LBOs, Divestitures, and Business
Failure 811
PART 4 Risk and the Required Rate of
Return 391 19 International Managerial Finance 855

8 Risk and Return 392

9 The Cost of Capital 442

PART 5 Long-Term Investment

Appendix 895
Decisions 475
Glossary 927
10 Capital Budgeting Techniques 476 Index 955
11 Capital Budgeting Cash Flows 517
12 Risk and Refinements in Capital
Budgeting 555

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 Contents

About the Authors 29

Preface 31
Acknowledgments 44

PART 1 Introduction to Managerial Finance 47

1 1.1 Finance and the Firm 50 1.4 Developing Skills for Your
The Role of What Is Finance? 50 Career 78
Managerial What Is a Firm? 51 Critical Thinking 79
Finance 48 What Is the Goal of the Firm? 51 Communication and Collaboration 79
in practice FOCUS ON ETHICS: Financial Computing Skills 79
Do Corporate Executives Have a Social
Responsibility? 52 Summary 79
The Role of Business Ethics 56 Opener-In-Review 81
➔ REVIEW QUESTIONS 57 Self-Test Problem 81
in practice Warm-Up Exercises 81
▲ Brookdale Senior FOCUS ON PRACTICE:
Living––Is Brookdale’s Must Search Engines Screen Out Fake Problems 83
Management About to Be News? 58 Spreadsheet Exercise 86
Retired? 49
1.2 Managing the Firm 58
The Managerial Finance Function 59
➔ REVIEW QUESTIONS 67

1.3 Organization Forms, Taxation,

and the Principal-Agent Relationship 67
Legal Forms of Business Organization 67
Agency Problems and Agency Costs 74
Corporate Governance 75
➔ REVIEW QUESTIONS 78

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 10 Contents
2 2.1 Financial Institutions 89
The Financial Commercial Banks, Investment Banks,
Market and the Shadow Banking System 89
Environment 87 ➔ REVIEW QUESTIONS 91
2.2 Financial Markets 91
The Relationship Between Institutions
and Markets 91
The Money Market 92
The Capital Market 93
▲ Airbnb––Billions of VC
Funding Gives Airbnb
in practice FOCUS ON PRACTICE:
Plenty of Room 88 Berkshire Hathaway: Can Buffett Be
Replaced? 94
The Role of Capital Markets 98
in practice FOCUS ON ETHICS:
Should Insider Trading Be Legal? 100
➔ REVIEW QUESTIONS 101
2.3 Regulation of Financial Markets
and Institutions 101
Regulations Governing Financial
Institutions 101
Regulations Governing Financial
Markets 102
➔ REVIEW QUESTIONS 102
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2.4 The Securities Issuing
Process 103
Issuing Common Stock 103
➔ REVIEW QUESTIONS 111
2.5 Financial Markets in Crisis 111
Financial Institutions and Real Estate
Finance 111
Spillover Effects and Recovery from the
Great Recession 114
➔ REVIEW QUESTIONS 114
Summary 115
Opener-In-Review 116
Self-Test Problem 117
Warm-Up Exercises 117
Problems 118
Spreadsheet Exercise 119
INTEGRATIVE CASE 1 Merit Enterprise
Corp. 120
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PART 2 Financial Tools 121
3 3.1 The Stockholders’ Report 124
Financial The Letter to Stockholders 124
Statements and in practice
GLOBAL FOCUS:
Ratio Analysis 122 More Countries Adopt International
Financial Reporting Standards 124
The Four Key Financial Statements 125
in practice FOCUS ON ETHICS:
Earnings Shenanigans 125
Notes to the Financial Statements 131
▲ Kroger––Ratios Point to Consolidating International Financial
Trouble at Kroger 123 Statements 131
➔ REVIEW QUESTIONS 132
3.2
Using Financial Ratios 133
Interested Parties 133
Types of Ratio Comparisons 133
Cautions About Using Ratio Analysis 136
➔ REVIEW QUESTIONS 137
3.3 Liquidity Ratios 138
Current Ratio 138
Quick (Acid-Test) Ratio 140
➔ REVIEW QUESTIONS 141
3.4 Activity Ratios 141
Inventory Turnover 141
Average Collection Period 142
Average Payment Period 144
Total Asset Turnover 144
➔ REVIEW QUESTION 145
3.5 Debt Ratios 145
Debt Ratio 147
Debt-to-Equity Ratio 147
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11
Contents
Times Interest Earned Ratio 148
Fixed-Payment Coverage Ratio 149
➔ REVIEW QUESTIONS 149
3.6 Profitability Ratios 149
Common-Size Income Statements 149
Gross Profit Margin 150
Operating Profit Margin 152
Net Profit Margin 152
Earnings Per Share (EPS) 153
Return on Total Assets (ROA) 154
Return on Equity (ROE) 154
➔ REVIEW QUESTIONS 156
3.7 Market Ratios 156
Price/Earnings (P/E) Ratio 157
Market/Book (M/B) Ratio 159
➔ REVIEW QUESTION 160
3.8 A Complete Ratio Analysis 160
Summary of Whole Foods’ Financial
Condition 160
DuPont System of Analysis 164
➔ REVIEW QUESTIONS 167
Summary 167
Opener-In-Review 169
Self-Test Problems 169
Warm-Up Exercises 170
Problems 171
Spreadsheet Exercise 186
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 12 Contents
4 4.1 The Financial Planning
Long- and Short- Process 190
Term Financial Long-Term Strategic Financial Plans 190
Planning 188 Short-Term (Operating) Financial
Plans 191
➔ REVIEW QUESTIONS 192
4.2 Measuring the Firm’s Cash
Flow 192
Depreciation 192
▲ Netflix Inc.––Not
Depreciation Methods 193
Streaming at Netflix— Developing the Statement of Cash
Cash Flow 189 Flows 195
Free Cash Flow 200
in practice FOCUS ON ETHICS:
Is Excess Cash Always a Good
Thing? 201
in practice FOCUS ON PRACTICE:
Free Cash Flow at LinkedIn 202
➔ REVIEW QUESTIONS 203
4.3 Cash Planning: Cash
Budgets 203
The Sales Forecast 203
Preparing the Cash Budget 204
Evaluating the Cash Budget 209
Coping with Uncertainty in the Cash
Budget 210
Cash Flow within the Month 211
➔ REVIEW QUESTIONS 211
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4.4 Profit Planning: Pro Forma
Statements 211
Preceding Year’s Financial Statements 212
Sales Forecast 212
➔ REVIEW QUESTION 213
4.5 Preparing the Pro Forma
Income Statement 213
Considering Types of Costs and
Expenses 214
➔ REVIEW QUESTIONS 215
4.6 Preparing the Pro Forma
Balance Sheet 215
➔ REVIEW QUESTIONS 217
4.7 Evaluation of Pro Forma
Statements 217
➔ REVIEW QUESTIONS 218
Summary 218
Opener-In-Review 220
Self-Test Problems 220
Warm-Up Exercises 222
Problems 222
Spreadsheet Exercise 233
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 13
Contents

5 5.1 The Role of Time Value in A General Equation for

Time Value of Finance 237
Money 235 Future Value Versus Present Value 237
Computational Tools 238
Basic Patterns of Cash Flow 240
➔ REVIEW QUESTIONS 240
5.2 Single Amounts 241
▲ Mega Millions Jackpot–– Future Value of a Single Amount 241
Pay Me Now or Pay Me
Present Value of a Single Amount 245
Later 236
➔ REVIEW QUESTIONS 248
➔ EXCEL REVIEW QUESTIONS 248
5.3 Annuities 249
Types of Annuities 249
Finding the Future Value of an Ordinary
Annuity 250
Finding the Present Value of an Ordinary
Annuity 251
Finding the Future Value of an Annuity
Due 253
Finding the Present Value of an Annuity
Due 254
Finding the Present Value of a
Perpetuity 256
➔ REVIEW QUESTIONS 257
➔ EXCEL REVIEW QUESTIONS 257
5.4 Mixed Streams 258
Future Value of a Mixed Stream 258
Present Value of a Mixed Stream 260
➔ REVIEW QUESTION 261
➔ EXCEL REVIEW QUESTION 261
Compounding 263
Using Computational Tools for
Compounding 263
Continuous Compounding 264
Nominal and Effective Annual Rates of
Interest 265
➔ REVIEW QUESTIONS 267
in practice FOCUS ON ETHICS:
Was the Deal for Manhattan a
Swindle? 267
➔ EXCEL REVIEW QUESTIONS 268
5.6 Special Applications of
Time Value 268
Determining Deposits Needed to
Accumulate a Future Sum 268
Loan Amortization 269
Finding Interest or Growth Rates 271
in practice FOCUS ON PRACTICE:
New Century Brings Trouble for
Subprime Mortgages 271
Finding an Unknown Number of
Periods 274
➔ REVIEW QUESTIONS 276
➔ EXCEL REVIEW QUESTIONS 276
Summary 276
Opener-In-Review 278
Self-Test Problems 278
Warm-Up Exercises 279
Problems 280
Spreadsheet Exercise 296
INTEGRATIVE CASE 2 Track Software,
Inc. 297

5.5 Compounding Interest More

Frequently than Annually 261
Semiannual Compounding 261
Quarterly Compounding 262

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 14 Contents

PART 3 Valuation of Securities 301

6 6.1 Interest Rates and Required 6.3 Valuation Fundamentals 325

Interest Rates Returns 304 Key Inputs 325
and Bond Interest Rate Fundamentals 304 Basic Valuation Model 326
Valuation 302 Term Structure of Interest Rates 309
➔ REVIEW QUESTIONS 327
in practice FOCUS ON PRACTICE:
I-Bonds Adjust for Inflation 310 6.4 Bond Valuation 327
Risk Premiums: Issuer and Issue
Bond Fundamentals 328
Characteristics 315
Bond Valuation 328
➔ REVIEW QUESTIONS 316
Semiannual Interest Rates and Bond
▲ Aston Martin Bond Values 330
6.2 Government and Corporate
Issue––The Name Is Changes in Bond Values 332
Bond—Junk Bond 303
Bonds 316
Yield to Maturity (YTM) 335
Legal Aspects of Corporate Bonds 317
Cost of Bonds to the Issuer 318 ➔ REVIEW QUESTIONS 337

General Features of a Bond Issue 319 ➔ EXCEL REVIEW QUESTIONS 337

Bond Yields 320
Summary 337
Bond Prices 320
Opener-In-Review 339
Bond Ratings 321
Self-Test Problems 340
Common Types of Bonds 321
Warm-Up Exercises 340
International Bond Issues 322
Problems 342
in practice FOCUS ON ETHICS:
“Can Bond Ratings Be Trusted?” 323 Spreadsheet Exercise 350

➔ REVIEW QUESTIONS 324

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7 7.1
Differences Between Debt
Stock Valuation 351 and Equity 353
▲ Tesla Inc.––Stock Prices
Are All About the Future 352
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Contents
7.4 Decision Making and Common
Stock Value 374
Voice in Management 353 Changes in Expected Dividends 375
Claims on Income and Assets 353 Changes in Risk 375
Maturity 354 Combined Effect 376
Tax Treatment 354 ➔ REVIEW QUESTIONS 376
➔ REVIEW QUESTION 354
Summary 376
7.2 Common and Preferred Opener-In-Review 378
Stock 354 Self-Test Problems 379
Common Stock 355 Warm-Up Exercises 379
Preferred Stock 358 Problems 380
➔ REVIEW QUESTIONS 360 Spreadsheet Exercise 388
INTEGRATIVE CASE 3 Encore
7.3 Common Stock Valuation 360 International 389
Market Efficiency and Stock Valuation 360
Common Stock Dividend Valuation
Model 362
in practice FOCUS ON PRACTICE:
Understanding Human Behavior Helps
Us Understand Investor Behavior 363
Free Cash Flow Valuation Model 367
Other Approaches to Common Stock
Valuation 370
in practice FOCUS ON ETHICS:
Index Funds and Corporate
Governance 372
➔ REVIEW QUESTIONS 374
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 16 Contents

PART 4 Risk and the Required Rate of Return 391

8 8.1 Risk and Return 8.4 Risk and Return: The Capital
Risk and Fundamentals 394 Asset Pricing Model (CAPM) 414
Return 392 What Is Risk? 394 Types of Risk 414
What Is Return? 394 The Model: CAPM 415
in practice FOCUS ON ETHICS: ➔ REVIEW QUESTIONS 424
If It Seems Too Good to Be True, It
Probably Is 395 Summary 424
Risk Preferences 397 Opener-In-Review 426
➔ REVIEW QUESTIONS 398 Self-Test Problems 426
▲ Legg Mason Global
Asset Management––
Warm-Up Exercises 427
8.2 Risk of a Single Asset 398
Miller’s Time 393 Problems 428
Risk Assessment 398 Spreadsheet Exercise 440
Risk Measurement 401
➔ REVIEW QUESTIONS 406

8.3 Risk of a Portfolio 406

Portfolio Return and Standard
Deviation 406
Correlation 408
Diversification 409
Correlation, Diversification, Risk, and
Return 411
International Diversification 412
in practice GLOBAL FOCUS:
An International Flavor to Risk
Reduction 413
➔ REVIEW QUESTIONS 414

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9 9.1 Overview of the Cost of
The Cost of Capital 444
Capital 442 in practice FOCUS ON ETHICS:
The Cost of Capital Also Rises 444
The Basic Concept 445
Sources of Long-Term Capital 447
➔ REVIEW QUESTIONS 448
9.2 Cost of Long-Term Debt 448
▲ J&J––Exceeding
Expectations 443 Net Proceeds 448
Before-Tax Cost of Debt 449
After-Tax Cost of Debt 451
➔ REVIEW QUESTIONS 452
➔ EXCEL REVIEW QUESTION 452
9.3 Cost of Preferred Stock 452
Preferred Stock Dividends 453
Calculating the Cost of Preferred
Stock 453
➔ REVIEW QUESTION 453
9.4 Cost of Common Stock 453
Finding the Cost of Common Stock
Equity 454
Cost of Retained Earnings 457
➔ REVIEW QUESTIONS 458
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17
Contents
9.5 Weighted Average Cost
of Capital 458
Calculating Weighted Average Cost of
Capital (WACC) 458
in practice FOCUS ON PRACTICE:
Uncertain Times Make for an Uncertain
Weighted Average Cost of Capital 460
Capital Structure Weights 461
➔ REVIEW QUESTIONS 461
Summary 462
Opener-In-Review 463
Self-Test Problem 463
Warm-Up Exercises 464
Problems 465
Spreadsheet Exercise 472
INTEGRATIVE CASE 4 Eco Plastics
Company 473
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 18 Contents

PART 5 Long-Term Investment Decisions 475

10 10.1 Overview of Capital 10.5 Comparing NPV and IRR

Capital Budgeting Budgeting 478
Techniques 476 Motives for Capital Expenditure 478
Steps in the Process 478
Basic Terminology 479
Capital Budgeting Techniques 480
➔ REVIEW QUESTION 481
10.2 Payback Period 481
Decision Criteria 482
▲ Maritime Resources
Corp.––The Gold Standard Pros and Cons of Payback Analysis 482
for Evaluating Gold in practice FOCUS ON PRACTICE:
Mines 477 Limits on Payback Analysis 484
➔ REVIEW QUESTIONS 485
10.3 Net Present Value (NPV) 486
Techniques 494
Net Present Value Profiles 494
Conflicting Rankings 495
Which Approach is Better? 499
in practice FOCUS ON ETHICS:
Baby You Can Drive My Car—Just Not
a VW Diesel 501
➔ REVIEW QUESTIONS 501
Summary 502
Opener-In-Review 503
Self-Test Problem 504
Warm-Up Exercises 504
Problems 506
Spreadsheet Exercise 516

Decision Criteria 486

NPV and the Profitability Index 488
NPV and Economic Value Added 489
➔ REVIEW QUESTIONS 490
➔ EXCEL REVIEW QUESTION 490

10.4 Internal Rate of Return

(IRR) 490
Decision Criteria 491
Calculating the IRR 491
➔ REVIEW QUESTIONS 493
➔ EXCEL REVIEW QUESTION 493

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 19
Contents

11 11.1 Project Cash Flows 519
Capital Budgeting Major Cash Flow Types 519
Cash Flows 517 Replacement Versus Expansion
Decisions 520
Sunk Costs and Opportunity Costs 521
in practiceFOCUS ON ETHICS:
Fumbling Sunk Costs 522
International Capital Budgeting and
Long-Term Investments 523
➔ REVIEW QUESTIONS 524
in practice GLOBAL FOCUS:
Changes May Influence Future
Investments in China 524
11.2 Finding the Initial
▲ Molson Coors Brewing
Company––Brewing Up a
Investment 525
Deal 518 Installed Cost of the New Asset 525
After-Tax Proceeds from the Sale of the
Old Asset 525
Change in Net Working Capital 528
Calculating the Initial Investment 529
➔ REVIEW QUESTIONS 530
11.4 Finding the Terminal Cash
Flow 535
After-Tax Proceeds from the Sale of New
and Old Assets 536
Change in Net Working Capital 536
➔ REVIEW QUESTION 537
11.5 Summarizing the Net Cash
Flows 537
➔ REVIEW QUESTION 539
Summary 539
Opener-In-Review 541
Self-Test Problems 541
Warm-Up Exercises 542
Problems 542
Spreadsheet Exercise 554

11.3 Finding the Operating Cash

Flows 530
Interpreting the Term Cash Flows 531
Interpreting the Term After-Tax 531
Interpreting the Term Incremental 534
➔ REVIEW QUESTIONS 535

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 20 Contents

12 12.1 Introduction to Risk in Capital 12.5 Capital Budgeting

Risk and Budgeting 557 Refinements 572
Refinements ➔ REVIEW QUESTION 557 Comparing Projects with Unequal
in Capital Lives 572
Budgeting 555 12.2 Behavioral Approaches for Recognizing Real Options 575
Dealing with Risk 557 Capital Rationing 577
Breakeven Analysis 558 ➔ REVIEW QUESTIONS 579
Scenario Analysis 559 ➔ EXCEL REVIEW QUESTION 580
Simulation 560
in practice FOCUS ON PRACTICE: Summary 580
The Monte Carlo Method: The Forecast Opener-In-Review 581
▲ General Motors––
Is for Less Uncertainty 562
Venezuelan Government Self-Test Problem 582
Seizes Factory Owned by ➔ REVIEW QUESTIONS 562 Warm-Up Exercises 582
GM 556 ➔ EXCEL REVIEW QUESTION 562 Problems 584
Spreadsheet Exercise 594
12.3 International Risk
INTEGRATIVE CASE 5 Lasting Impressions
Considerations 562 Company 595
➔ REVIEW QUESTION 563

12.4 Risk-Adjusted Discount

Rates 564
Determining Risk-Adjusted Discount Rates
(RADRs) 564
in practice FOCUS ON ETHICS:
Remain Calm—All Is Well 567
Applying RADRs 567
Portfolio Effects 570
RADRs in Practice 570
➔ REVIEW QUESTIONS 572

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 21
Contents

PART 6 Long-Term Financial Decisions 597

13 13.1 Leverage 600 13.4 Choosing the Optimal Capital

Leverage Breakeven Analysis 601 Structure 633
and Capital Operating Leverage 604 Linkage 633
Structure 598 in practice FOCUS ON PRACTICE: Estimating Value 634
Qualcomm’s Leverage 607 Maximizing Value Versus Maximizing
Financial Leverage 608 EPS 635
Total Leverage 611 Some Other Important
Considerations 635
in practice FOCUS ON ETHICS:
Repo 105 Man 614 ➔ REVIEW QUESTIONS 636

▲ Apple Inc.—Apple ➔ REVIEW QUESTIONS 615

Summary 636
Leverages Its Brand 599
13.2 The Firm’s Capital Opener-In-Review 638
Structure 615 Self-Test Problems 639
Types of Capital 615 Warm-Up Exercises 640
External Assessment of Capital Problems 641
Structure 616 Spreadsheet Exercise 651
Capital Structure of Non–U.S. Firms 617
Capital Structure Theory 618
Optimal Capital Structure 627
➔ REVIEW QUESTIONS 629

13.3 EBIT–EPS Approach to

Capital Structure 629
Presenting a Financing Plan
Graphically 630
Comparing Alternative Capital
Structures 631
Considering Risk in EBIT–EPS
Analysis 632
Basic Shortcoming of EBIT–EPS
Analysis 633
➔ REVIEW QUESTION 633

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 22 Contents

14 14.1 The Basics of Payout Policy 654
Payout Policy 652 Elements of Payout Policy 654
Trends in Earnings and Dividends 654
Trends in Dividends and Share
Repurchases 656
in practice FOCUS ON ETHICS:
Buyback Mountain 658
▲ Whirlpool Corporation–– ➔ REVIEW QUESTIONS 658
Increasing Dividends 653
14.2 The Mechanics of Payout
Policy 658
Cash Dividend Payment Procedures 659
Share Repurchase Procedures 661
Tax Treatment of Dividends and
Repurchases 662
in practice FOCUS ON PRACTICE:
Capital Gains and Dividend Tax
Treatment Extended to 2012 and
Beyond for Some 663
Dividend Reinvestment Plans 664
Stock Price Reactions to Corporate
Payouts 664
➔ REVIEW QUESTIONS 665
14.5 Types of Dividend Policies 671
Constant-Payout-Ratio Dividend
Policy 671
Regular Dividend Policy 672
Low-Regular-and-Extra Dividend
Policy 673
➔ REVIEW QUESTION 673
14.6 Other Forms of Dividends 673
Stock Dividends 673
Stock Splits 675
➔ REVIEW QUESTIONS 676
Summary 677
Opener-In-Review 678
Self-Test Problems 679
Warm-Up Exercises 679
Problems 680
Spreadsheet Exercise 687
INTEGRATIVE CASE 6 O’Grady Apparel
Company 688

14.3 Relevance of Payout Policy 665

Residual Theory of Dividends 665
The Dividend Irrelevance Theory 666
Arguments for Dividend Relevance 667
➔ REVIEW QUESTIONS 668

14.4 Factors Affecting Dividend

Policy 668
Legal Constraints 668
Contractual Constraints 670
Growth Prospects 670
Owner Considerations 670
Market Considerations 671
➔ REVIEW QUESTION 671

A01_ZUTT1515_15_GE_FM.indd 22 23/08/18 4:48 PM

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coercion
coercive
coeval
coffee
coffer
coffers
coffin
coffins
cognisance
cognisant
cognizable
cognizance
coherence
coherent
coherer
cohesion
coil
coils
Coin
coinage
coincided
coincident
Coincidentally
coinciding
coined
coins
Coit
Coke
cold
coldly
Coleman
COLENSO
Coler
Colesberg
Colima
collapse
collapsed
collar
collars
collate
collateral
colleague
colleagues
collect
collected
collecting
collection
Collections
collective
collectively
collectivist
collector
collectors
collects
COLLEGE
COLLEGES
collegiate
collier
colliers
Collins
Collis
collision
collisions
Colloquially
Cologan
Colomb
Colombari
COLOMBIA
Colombian
Colombo
Colon
Colonel
colonelcy
colonels
colonial
colonials
Colonies
colonisation
colonists
colonization
colonize
colonizing
colonnade
Colony
color
COLORADO
Colorados
colored
colors
colossal
colossi
Colossus
colour
coloured
colourless
colours
cols
Colt
Columbia
Columbian
COLUMBUS
column
columns
Colón
Com
Comanches
combat
combatant
combatants
combated
combating
combative
combats
combed
combination
combinations
Combine
combined
combines
combing
combining
combustible
combustion
Come
comer
comers
comes
comfort
comfortable
comfortably
comforting
comforts
coming
comity
Command
commandant
Commandants
commanded
commandeer
commandeered
Commandeering
Commander
commanders
Commanding
COMMANDO
commandos
commands
comme
commemorate
commemorated
commemorates
commence
commenced
commencement
commences
Commencing
commend
commendable
commendation
commended
commending
commensurate
comment
commented
Commenting
comments
COMMERCE
Commercial
Commerciale
commercialism
Commercially
Commerford
commettant
comminuted
commissariat
commissaries
Commissary
Commission
COMMISSIONED
commissioner
commissioners
Commissions
commit
committal
committed
committee
committees
committing
commodities
commodity
Commodore
Common
Commoners
commonly
Commons
commonwealth
commonwealths
commotion
communal
communes
communicate
communicated
communicates
communicating
communication
Communications
communicative
communion
communions
communique
communities
community
commutation
commuted
comp
compact
compacted
compactly
Compagnie
companies
companion
companions
company
comparable
comparative
comparatively
Compare
Compared
compares
comparing
Comparison
comparisons
compartments
compass
compassed
Compassionate
compatible
compatriots
compel
Compelled
compelling
compels
compendium
compensate
compensates
compensating
COMPENSATION
compensations
Compensatory
compete
competed
competence
competency
competent
competing
Competition
competitive
competitively
competitor
competitors
compilation
compile
compiled
compilers
complacency
complacent
complain
complainant
complained
complaining
complaint
Complaints
complement
COMPLETE
completed
completely
completeness
completes
completing
completion
complex
complexities
complexity
compliance
complicate
complicated
complication
complications
complicity
complied
complies
complimenting
Compliments
comply
complying
component
comport
comports
compos
compose
composed
composer
composing
composite
composition
compound
compounded
compounds
comprehend
comprehended
comprehending
comprehension
comprehensive
compressed
compression
compressor
comprise
comprised
comprises
comprising
Compromis
compromise
compromised
compromises
compromising
Comptroller
compulsion
COMPULSORY
compunction
computation
computed
comrade
comrades
Comte
Comus
Concas
conceal
concealed
concealing
concealment
conceals
concede
conceded
concedes
conceding
conceit
conceivable
conceivably
conceive
conceived
Conceiving
concentrate
concentrated
concentrating
concentration
concentrations
concentric
Concepcion
conception
Conceptions
concern
concerned
Concerning
concerns
Concert
concerted
concerts
Concession
concessionaire
concessionary
concessions
conciliate
conciliated
conciliating
Conciliation
conciliators
conciliatory
concisely
conclude
concluded
concludes
concluding
Conclusion
conclusions
conclusive
conclusively
concocted
concomitant
Concord
Concordat
concourse
concrete
concubine
concupiscence
concur
concurred
concurrence
concurrent
concurrently
concurring
concurs
condamnant
condemn
condemnable
condemnation
condemnatory
condemned
condemning
condemns
condensation
condenser
condensers
condescension
condign
condition
conditional
conditionally
conditioned
conditions
CONDOMINIUM
conduce
conduces
conducive
conduct
conducted
conducting
conductive
conductivity
conductor
conductors
conducts
conduits
Condé
confederacies
CONFEDERATE
Confederated
Confederation
confer
Conference
conferences
conferred
conferring
confers
confess
confessed
confessedly
confesses
confessing
Confession
confessions
confessor
confessors
confide
confided
Confidence
Confident
confidential
confidentially
confidently
Confiding
configuration
confine
confined
confinement
confines
confining
confirm
Confirmation
confirmatory
confirmed
confirming
confirms
confiscated
conflagration
conflict
Conflicting
conflicts
confluence
conform
conformable
conformably
conformation
conformed
conformer
conforming
conformity
conformément
confounded
confounding
confront
confronted
confronts
Confucianism
Confucius
confuse
confused
confusing
confusion