Harvard Corporate Governance

NOVEMBER 15, 2022

These final rules follow the SEC’s issuance of proposed rules in July 2015, which laid dormant until the re-opening of two separate comment periods in October 2021 and June 2022. – Excludes revisions due to internal reorganizations impacting reportable segment disclosures or changes in capital structure (e.g.,

Capital Structure 202

Capital Structure Dividends 202

Andrew Stolz

NOVEMBER 17, 2021

Consider research done by Kroen (2021) that shows that since about 1998, U.S. companies have distributed more money through buybacks than through dividends. Chart from Kroen (2021). This usually happens when a company is making a deliberate and significant change to its capital structure.

Dividends 52

Dividends Capital Structure Banking Start-ups 52

Reynolds Holding

DECEMBER 10, 2023

As a capital allocation decision, share buybacks intersect all three of the main corporate finance activities of investing, financing, and dividends [1]. Buybacks for Financing A company can alter the debt-to-equity ratio of its capital structure by issuing debt and/or buying back shares.

Dividends 45

Dividends Total Shareholder Return Corporate Finance Finance 45

Valutico

DECEMBER 15, 2022

It is often used as it eases the comparability between companies from the same industry (without having to worry about asset or capital structure). . This is a very similar multiple to the EV/EBITDA excludes D&A (thus the asset structure). EV/EBITDA – Shows the ratio of Enterprise Value to the EBITDA of a company.

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

It is often used as it eases the comparability between companies from the same industry (without having to worry about asset or capital structure). . This is a very similar multiple to the EV/EBITDA excludes D&A (thus the asset structure). EV/EBITDA – Shows the ratio of Enterprise Value to the EBITDA of a company.

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Musings on Markets

OCTOBER 25, 2022

For Microsoft, this would yield values of $69,916 million for operating income and an effective tax rate of 13.83% in 2021, resulting in a FCFF of $40,879 million in 2021. An intuitive reading of the FCFE is that it is cash available to be returned to equity investors, either in the form of dividends or as cash buybacks.

Dividends 107

Dividends EBITDA Equity Start-ups 107