Dividend policy relevance in a levered firm—The binomial case

Dan Galai, Zvi Wiener*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


In this paper we illustrate a world with perfect capital markets and with no taxes, and show the condition under which the stockholders in a levered firm will be (un-) affected by the dividend policy. We illustrate it for a firm's value which follows the binomial distribution.

Original languageAmerican English
Pages (from-to)78-80
Number of pages3
JournalEconomics Letters
StatePublished - Nov 2018

Bibliographical note

Publisher Copyright:
© 2018 Elsevier B.V.


  • Binomial contingent claim model
  • Corporate debt
  • Dividend policy


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