While American calls on non-dividend-paying stocks may be valued as European, there is no completely explicit exact solution for the values of American puts. We use a technique called randomization to value American puts and calls on dividend-paying stocks. This technique yields a new semiexplicit approximation for American option values in the Black-Scholes model. Numerical results indicate th...

This paper provides new evidence on the predictive power of dividend yields for U.S. aggregate stock returns. Following Miller and Modigliani, we construct a measure of the dividend yield that includes all cash flows to shareholders. We show that this alternative cash-flow yield has strong and stable predictive power for returns, and appears robust to a battery of tests that have been proposed ...

We study the expected time to ruin in a risk process in which dividends are paid when the surplus is above the barrier. We consider the case in which the dividend rate is smaller than the premium rate. We obtain results for the classical compound Poisson risk process with phase-type claim size. When the ruin probability is 1, we derive the expected time to ruin and the expected dividends paid. ...

This study aims to identify & analyze the impact of tax planning, dividend policy corporate ownership on business cost manufacturing companies in food and beverage sub-sector traded Indonesian Stock Exchange for period 2017. -2020. The data collection uses secondary from financial reports available at www.idx.co.id shares a total 104 2017-2020 Exchange-listed sub-sector. observations. . sam...

We investigate a dividend maximization problem under stochastic interest rates with Ornstein-Uhlenbeck dynamics. This setup also takes negative into account. First deterministic time is considered, where an explicit separating curve α(t) can be found to determine the optimal strategy at t. In second setting, we introduce strategy-independent stopping time. The properties and behavior of these c...

This paper presents a consumptiun-ba,setl model that explains Ihe equity premitim puzzle through two channels, Hirst, because of borrowing constraints, the sharehokler cannt)t completely diversify his income risk ami requires a sizable risk premium on .stocks. Second, because of limited stock market participation, the precautionary saving demand lowers the risk-free rate but not stock reiurn an...

This paper analyzes the debt ratio and the scale of cash dividend among the internationalized and domestic electronic industries in the US from 1999 to 2008 as the reference for financing strategies and decision. The evidence shows that the debt ratio and the payout cash dividend ratio in the internationalized electronic firms are lower than those in domestic electronic firms. Due to the unique...

This paper simulates a 'service-neutral' digital dividend auction, considering three different amounts of spectrum (48 MHz, 80 MHz and 120 MHz). For this, an efficient simulator for combinatorial first-price sealed bid auctions has been implemented. The results show rather coherently that the price per lot is higher the smaller the amount of spectrum auctioned and that companies from the mobile...