|Dividend reinvestment plan (DRP)
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Definition of Dividend reinvestment plan (DRP)
Dividend reinvestment plan (DRP)
Automatic reinvestment of shareholder dividends in more shares of a
A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor
A dividend paid in cash to a company's shareholders. The amount is normally based on
Financial planning conducted by a firm that encompasses preparation of both
A requirement that any missed preferred or preference stock dividends be paid
A pension plan in which the sponsor agrees to make specified dollar payments to
A pension plan in which the sponsor is responsible only for making specified
A formula to estimate the intrinsic value of a firm by figuring the
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
With respect to a project financing, an arrangement under which the sponsors of a project
A group of shareholders who prefer that the firm follow a particular dividend policy. For
A model for valuing the common stock of a company, based on the
A model wherein dividends are assumed to be at a constant rate in perpetuity.
A bond covenant that restricts in some way the firm's ability to pay cash dividends.
Percentage of earnings paid out as dividends.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
An established guide for the firm to determine the amount of money it will pay as dividends.
The fixed or floating rate paid on preferred stock based on par value.
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Dividends per share
dividends paid for the past 12 months divided by the number of common shares
Employee stock ownership plan (ESOP)
A company contributes to a trust fund that buys stock on behalf of
Extra or special dividends
A dividend that is paid in addition to a firm's "regular" quarterly dividend.
This literally means "without dividend." The buyer of shares when they are quoted ex-dividend
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to
A financial blueprint for the financial future of a firm.
The process of evaluating the investing and financing options available to a firm. It
Arrangement used to finance inventory. A finance company buys the inventory, which is then
Sale of some shares of stock to get cash that would be similar to receiving a cash dividend.
Total amount of dividends that would be paid on a share of stock over the next 12 months
Defined benefit pension plans that are guaranteed by life insurance products. Related: noninsured plans
Long-term financial plan
Financial plan covering two or more years of future operations.
Payment by a firm to its owners from capital rather than from earnings.
Materials requirement planning
Computer-based systems that plan backward from the production schedule
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Defined benefit pension plans that are not guaranteed by life insurance products. Related:
Overfunded pension plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).
A fund that is established for the payment of retirement benefits.
Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital
Plan for reorganization
A plan for reorganizing a firm during the Chapter 11 bankruptcy process.
The entities that establish pension plans, including private business entities acting for their
Planned amortization class CMO
1) One class of CMO that carries the most stable cash flows and the
Planned capital expenditure program
Capital expenditure program as outlined in the corporate financial plan.
Planned financing program
Program of short-term and long-term financing as outlined in the corporate
The length of time a model projects into the future.
The rate at which an investor assumes interest payments made on a debt security can be
The risk that proceeds received in the future will have to be reinvested at a lower potential
Residual dividend approach
An approach that suggests that a firm pay dividends if and only if acceptable
Short-term financial plan
A financial plan that covers the coming fiscal year.
Signaling view (on dividend policy)
The argument that dividend changes are important signals to investors
Also referred to as an extra dividend. dividend that is unlikely to be repeated.
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Tax differential view ( of dividend policy)
The view that shareholders prefer capital gains over dividends,
Tax-deferred retirement plans
Employer-sponsored and other plans that allow contributions and earnings to
Traditional view (of dividend policy)
An argument that "within reason," investors prefer large dividends to
Underfunded pension plan
A pension plan that has a negative surplus (i.e., liabilities exceed assets).
Purchase of shares in which the buyer is entitled to the forthcoming dividend. Related: exdividend.
The ability to establish automatic periodic mutual fund redemptions and have proceeds
A payment a company makes to stockholders. Earnings before income tax. The profit a company made
The payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period.
Planning, programming and budgeting system (PPBS)
A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres.
Income that a company receives in the form of dividends on stock in other companies that it holds.
Amounts paid to the owners of a company that represent a share of the income of the company.
dividend payout ratio
Computed by dividing cash dividends for the year
dividend yield ratio
Cash dividends paid by a business over the most
property, plant, and equipment
This label is generally used in financial
cafeteria plan a â€śmenuâ€ť of fringe benefit options that include
cash or nontaxable benefits
dividend growth method
a method of computing the cost
Employee Stock Ownership Plan (ESOP)
a profit-sharing compensation program in which investments are made in
enterprise resource planning (ERP) system
a packaged software program that allows a company to
manufacturing resource planning (MRP II)
a fully integrated materials requirement planning system that involves
materials requirements planning (MRP)
a computerbased information system that simulates the ordering and
a formulation of the details of implementing
the process of creating the goals and objectives for
an assumption made about the rates of return that will be earned by intermediate cash flows from a capital project; NPV and PI assume reinvestment at the discount rate; IRR assumes reinvestment at the IRR
the process of developing a statement of
the process of determining the specific
A payment made to shareholders that is proportional to the number of shares
Manufacturing resource planning (MRP II)
An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of
Material requirements planning (MRP)
A computer-driven production methodology
A formal agreement between an entity and its employees, whereby the
Property, plant, and equipment
This item is comprised of all types of fixed assets
Payment of cash by the firm to its shareholders.
constant-growth dividend discount model
Version of the dividend discount model in which dividends grow at a constant rate.
Periodic cash distribution from the firm to its shareholders.
dividend discount model
Computation of todayâ€™s stock price which states that share value equals the present value of all expected future dividends.
dividend payout ratio
Percentage of earnings paid out as dividends.
Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
information content of dividends
dividend increases send good news about cash flow and earnings. dividend cuts send bad news.
MM dividend-irrelevance proposition
Theory that under ideal conditions, the value of the firm is unaffected by dividend policy.
Time horizon for a financial plan.
Distribution of additional shares to a firmâ€™s stockholders.
Profits paid out to shareholders by a corporation.
Plant and Equipment
Buildings and machines that firms use to produce output.
A retirement plan set up by an employer, into which employees can
A retirement plan similar to a 401k plan, except that it is designed
A flexible benefits plan authorized under the Internal Revenue
Defined Benefit Plan
A pension plan that pays out a predetermined dollar
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