Dividend policy relevance in a levered firm—The binomial case

Dan Galai and Zvi Wiener

Economics Letters, 2018, vol. 172, issue C, 78-80

Abstract: In this paper we illustrate a world with perfect capital markets and with no taxes, and show the condition under which the stockholders in a levered firm will be (un-) affected by the dividend policy. We illustrate it for a firm’s value which follows the binomial distribution.

Keywords: Binomial contingent claim model; Dividend policy; Corporate debt (search for similar items in EconPapers)
JEL-codes: G12 G13 G15 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176518303276
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:172:y:2018:i:c:p:78-80

DOI: 10.1016/j.econlet.2018.08.021

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().