Analysis of Dividends and Share Repurchases — Flashcards

Analysis of Dividends and Share Repurchases CFA Flashcards - Medical Study Cards

Master Analysis of Dividends and Share Repurchases with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.

Analysis of Dividends and Share Repurchases Flashcard Deck - 10 Cards

Flashcard 1: after tax cost of funds

Answer: \= (after-tax cost of borrowing)(shares repurchased)(buyback share price)

Flashcard 2: number of treasury shares =

Answer: \= assumed proceeds / average share price during reporting period

Flashcard 3: Share repurchase methods

Answer: - open market transactions - fixed-price tender offer: buy fixed # of shares at premium (fastest process) - Dutch auction: range of prices, identify minimum clearing price, the price of last offer accepted (highest accepted bid price) is price paid - direct negotiation: purchase from major shareholder, usually at discount

Flashcard 4: Tax aversion theory?

Answer: investors prefer not to receive dividends due to higher tax rates than capital gains

Flashcard 5: 5 types of dividends

Answer: 1. regular cash dividends 2. special dividends 3. liquidating dividend: paid when part or all of firm is sold or when dividends in excess of cumulative retained earnings are paid 4. stock dividend: more shares, increase stock's float 5. stock splits: like stock dividends but larger in size

Flashcard 6: Stock dividends & splits affect on capital structure?

Answer: no affect on capital structure or ratios - stock dividend: decrease in retained earnings offset by increase in contributed capital - stock split: no affect on book value of equity or tax basis for shareholders

Flashcard 7: Dividend irrelevance theory?

Answer: - Miller & Mod believe dividend policy is irrelevant & has no effect on stock price or its cost of capital (based on homemade dividends concept) - assumptions: no taxes, no brokerage costs & infinitely divisible shares

Flashcard 8: Effects of repurchasing shares using debt

Answer: - less of an increase in EPS than using cash - EPS will increase if the after-tax funding cost is less than the earnings yield

Flashcard 9: Effects of a stock repurchase on book value

Answer: If price paid is higher (lower) than the pre-repurchase BVPS, the BVPS will decrease (increase)

Flashcard 10: Sustainable growth rate. SGR =

Answer: \= b\*ROE\ b: retention rate

Keywords: Analysis of Dividends and Share Repurchases flashcards, medical flashcards, NEET PG preparation, USMLE Step 1 flashcards, Anki alternative, spaced repetition medical, Oncourse flashcards

Study by Chapter

Forms of dividends and effects on shareholder wealth

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Dividend theories and share value

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Signalling content of dividend changes

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Agency costs and payout policy

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Factors affecting dividend policy in practice

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Double taxation, imputation and split-rate tax systems

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Stable dividend vs constant payout ratio policies

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Trends in corporate payout policies

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Share repurchase methods

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Repurchase effects on EPS: cash vs debt financed

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Effect of a repurchase on book value per share

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Cash dividends vs share repurchases

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Dividend coverage ratios from net income and FCF

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Dividend safety and sustainability indicators

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About Analysis of Dividends and Share Repurchases Flashcards for CFA

These Analysis of Dividends and Share Repurchases flashcards are designed for CFA Corporate Finance (Level II) preparation, using active recall to help you retain high-yield concepts, clinical correlations, and commonly tested facts. Each card prompts you to retrieve information from memory rather than passively reviewing notes, which research shows leads to significantly better exam performance.

The 25 cards in this deck cover the most important topics in Analysis of Dividends and Share Repurchases, including key mechanisms, diagnostic criteria, treatment protocols, and clinical pearls that frequently appear in CFA examinations. Cards are organised by chapter so you can focus on specific areas or work through the entire topic systematically.

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Frequently Asked Questions

Are Analysis of Dividends and Share Repurchases flashcards free on Oncourse?

Yes, completely free. You can study all 25 Analysis of Dividends and Share Repurchases flashcards on this page at no cost. For spaced repetition scheduling and progress tracking, download the Oncourse app.

How do flashcards help with CFA preparation?

Flashcards use active recall — instead of passively re-reading notes, you retrieve information from memory. Research shows this builds stronger, longer-lasting memories and is one of the most effective study strategies for medical exams like CFA.

How many Analysis of Dividends and Share Repurchases flashcards are available?

There are currently 25 flashcards for Analysis of Dividends and Share Repurchases under Corporate Finance (Level II), organised by chapter. New cards are added regularly to cover the latest CFA syllabus.

Can I study Analysis of Dividends and Share Repurchases flashcards by chapter?

Yes. The flashcards are organised by chapter so you can focus on specific areas or work through the entire topic systematically. Scroll down to the "Study by Chapter" section to pick a chapter.

What topics do these Corporate Finance (Level II) flashcards cover?

The cards cover high-yield concepts, clinical correlations, diagnostic criteria, treatment protocols, and commonly tested facts from Analysis of Dividends and Share Repurchases. They mirror the depth and style of CFA questions.

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