Corporate Finance: Instructor\'s Manual Applied Corporate Finance

Aswath Damodaran 416

Steps to the Dividend Decision...

Cfroamsh flow

Operations

Cashflows to Debt(Principal repaid,

IExpenses)nterest

OCapsehraflotiownss^ f rtoo m^

Equity Investors

Rinetoi nthvees btmuesinnte (^) sbasck
Cfora srhet (^) uarvna toila ble
stockholders
Cby the companyash held back
Cash Paid out
Stock Buybacks
Dividends
How much did you borrow?
How good are your investment choices?
What is a reasonable cash balance?
Wstohcakt (^) hdoold yeorus rp (^) refer?

Dividend policy is affected by investment and financing decisions....