Persimmon's surplus requirement

In just one morning, shares in Persimmon (PSN) recovered all the losses sustained since the beginning of the year, rising nearly 10 per cent. And it’s not hard to see why. With net cash of £1.3bn, the housebuilder is proposing to make additional payments of 125p a share for the next three years, which means that the original capital return plan worth 620p a share has been more than doubled to 1,300 a share.