LECF2 *1

FINC3400Discussion4.docx

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Name

September 1st, 2019

FINC 3400

Title

This discussion assignment is a three-part discussion. Each section is worth 33%.

1. Are stock repurchases better than dividends? From the perspective of a financial manager or shareholder, explain the pros and cons of stock repurchases versus dividend payments.

2. Elaborate on the difference between stock dividend and stock split. Explain which of the aforementioned is better or more favorable, and why.

3. List and explain the difference between the Dividend Discount Model (DDM), Gordon Growth Model (GGM), and supernormal dividend growth model? How is the DDM related to the Time Value of Money (TVM)?

References

Parrino, R., Kidwell, D., & Bates, T. (2014). Fundamentals of corporate finance (3rd ed.). Milton, Qld: John Wiley & Sons Australia, Ltd.

(E-BOOK)

Parrino, R., Kidwell, D., & Bates, T. (2019). Fundamentals of corporate finance (3rd ed.).