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Corporate Finance & Valuation Intermediate

Dividends & Share Buybacks: Payout Policy, Yields & EPS Effects

Sit in the CFO's chair of a fictional manufacturer: payout and retention, dividend and FCF cover, sustainable growth, buyback EPS accretion, buyback vs dividend, buyback price vs value, Lintner smoothing and a payout capacity dashboard, every cell checked live. Educational only, not investment advice.

8 lessons 8 labs 2 h Certificate

  • One-time payment
  • 14-day money-back guarantee
  • Secure checkout with Stripe

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

  • Calculate Halvern Industries' payout and retention ratios for five years and the payout ratio over the whole period.
  • Test whether Halvern's profits and free cash flow cover its dividends, and whether FCF also covers dividends plus buybacks.
  • Calculate Halvern's sustainable growth rate each year and work out the highest payout ratio that still funds the board's 9% growth target.
  • Model Halvern's USD 300m buyback: shares retired, the interest income given up, EPS before and after, and the share price at which the buyback stops being accretive.
  • Show that, ignoring taxes and signals, a USD 300m dividend and a USD 300m buyback leave a shareholder equally rich, and you measure Halvern's total shareholder yield.
  • Test Halvern's USD 300m buyback at five prices against an intrinsic value of USD 70 per share and measure the value moved between selling and remaining shareholders.
  • Smooth Halvern's dividend towards a 40% target payout with a Lintner-style partial adjustment, chart it against the target, and size a one-off special dividend from excess cash.
  • Build Halvern's payout dashboard: five years of dividends and buybacks against free cash flow, a stacked column chart of the mix, and next year's capacity under the leverage policy.

About this course

Should a company pay cash out as dividends, buy back shares, or keep it? You answer that by modelling the consequences. Starting with payout and retention ratios, you test dividend cover against earnings and free cash flow with buybacks included, then link ROE and retention to a sustainable growth rate and a payout ceiling. A buyback is traced through shares retired and EPS accretion, set against an equivalent dividend, and summed into shareholder yield. You see who gains and who loses when shares are repurchased above or below intrinsic value, smooth dividends with a Lintner-style adjustment and decide on a special dividend. A capacity dashboard pulls cash flow, leverage headroom and the payout mix together. For finance students, analysts and corporate finance teams.

Curriculum

Course content

8 lessons · 8 labs · 2 h · final exam

  1. Payout Ratio, Retention Ratio & Earnings RetainedLab12 min4 checked tasks
    Unlocked when you buy the course
  2. Dividend Cover by Earnings and by Free Cash Flow, Buybacks IncludedLab14 min4 checked tasks
    Unlocked when you buy the course
  3. Sustainable Growth Rate: ROE × Retention and the Payout CeilingLab14 min4 checked tasks
    Unlocked when you buy the course
  4. Share Buyback Mechanics: Shares Retired and EPS AccretionLab15 min4 checked tasks
    Unlocked when you buy the course
  5. Buyback vs Dividend: the Equivalence and Shareholder YieldLab15 min4 checked tasks
    Unlocked when you buy the course
  6. Buyback Price vs Intrinsic Value: Who Wins, Who LosesLab15 min4 checked tasks
    Unlocked when you buy the course
  7. Dividend Smoothing (Lintner) and the Special DividendLab16 min4 checked tasks
    Unlocked when you buy the course
  8. Payout Capacity Dashboard: FCF, Leverage Headroom and the Payout MixLab16 min4 checked tasks
    Unlocked when you buy the course
  9. Final exam12 questions, 75% to pass, unlimited retries.

Certificate

Finish with a certificate you can verify

Complete every lesson and pass the final exam to receive a certificate of completion for this course, with a unique credential ID and a public verification page.

  • Names the course, your score and the date of issue
  • A verification link for your CV or LinkedIn profile
  • 12 questions, 75% to pass, unlimited retries.

A Tutorvo certificate confirms that you completed a course. It is not an official or professional qualification.

Illustration. Your certificate shows your own name, course and credential ID.

Before you buy

Questions about this course

Is this a subscription?

No. You pay $9.99 once for this course. There is no subscription and nothing renews automatically. Prices are in US dollars; taxes may be added where required.

What exactly do I get?

All lessons and labs of this course, the final exam and the certificate, including later updates to the course, for as long as Tutorvo offers it. Access is personal and tied to your account.

Can I get a refund?

Yes. If you are not satisfied, email hello@tutorvo.com within 14 days of buying and we refund the course in full via Stripe. The guarantee does not apply once a certificate for the course has been issued to you, or where there are signs of abuse.

When can I start?

Right after payment. Access starts immediately at your request; for consumers in the EU/EEA the statutory right of withdrawal therefore ends once access has begun, while our 14-day money-back guarantee applies regardless.

Do I need Excel or other software?

No. The labs run in a spreadsheet inside your browser on a laptop, tablet or phone. Function names and syntax follow Excel.

Is the certificate an official qualification?

No. It confirms that you completed all lessons of the course and passed its final exam. It is not an official, state-recognised or professional qualification. The name is taken from your profile when the certificate is issued.

Full details are in our Terms · hello@tutorvo.com

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