Module 22.2 LOS 22.g: Stable, Constant and Residual Dividend Policy
A stable dividend policy focuses on a maintaining a steady dividend payout regardless of earnings volatility. To approximate the appropriate …
corporate finance
Module 25.2 LOS 20.f: Hostile Takeover Defenses
There are pre-offer and post-offer defenses for a hostile takeover. Post-offer defenses are more difficult to execute as there is …
Module 25.1 LOS 20.b: Rationale for Mergers
The outlines several common reasons that mergers may occur for: Synergies – the concept that the combined company will be …
Module 20.3 LOS 20.i: Economic profit, residual income, and claims valuation models
Economic profit is a measure of profit in excess of the dollar cost of capital invested in a project: EP = …
Module 20.2 LOS 20.c: Evaluating Projects with Unequal Lives, Replicable or Not
When two projects are mutually exclusive, the firm may choose one project or the other, but not both. If mutually exclusive …