Payout Lab Part 1

Dividend yield

Dividend yield = \frac{D P S}{P}

Payout ratio

Payout ratio = \frac{D P S}{E P S}

Distributions

\begin{aligned} Distributions & = N I \\ - (Target equity ratio \times Capital budget) \end{aligned}

Distribution ratio

Distribution ratio = \frac{Distributions}{N I}

Perfect world, no taxes

P_{ex} = P_{cum} - D P S

Equity

S = V_{o p} + ST Inv. - Debt

Price

P = \frac{S}{n}

Dividend per share

D P S = \frac{Total dividend}{n}

Shares repurchased

n_{Prior} - n_{Post} = \frac{{Cash}_{Rep}}{P_{Prior}}

Shares after the repurchase

n_{Post} = n_{Prior} - \frac{{Cash}_{Rep}}{P_{Prior}}

k-for-1 split

n_{new} = k n, P_{new} = \frac{P}{k}

Stock dividend of x%

n_{new} = (1 + x) n, P_{new} = \frac{P}{1 + x}