Trevor Co's future earnings for the next four years are predicted below
Assuming there are 500,000 shares
outstanding, what will the yearly dividend per share be if the dividend policy is
Trevor & Co
1 $900,000
2 1,200,000
3 850,000
4 1,350,000
a. a constant payout ratio of 40%
b. stable dollar dividend targeted at 40% of the average earnings over the four-year period
c. small, regular dividend of $0.75 plus a year-end extra of 40% of profits exceeding $1,000,000
a.
.40(900,000)/500,000 = $0.72
.40(1,200,000)/500,000 = 0.96
.40(850,000)/500,000 = 0.68
.40(1,350,000)/500,000 = 1.08
b.
.40(1,075,
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Which of the following statements is true about the changing economic system since the 1980s?
A. There has been a shift from market-based economies to centrally planned economies. B. There has been a shift away from a mixed economy. C. Many states have restricted the sale of state-owned businesses to private investors. D. The competition between economies has been reducing. E. The extent to which property rights are protected has declined.