Last year Breaking News Company earned $15 million, and it paid $6 million in dividends The company follows a constant payout ratio dividend policy If the company would like to pay $8 million in dividends next year, how much must Breaking News earn ...

Last year Breaking News Company earned $15 million, and it paid $6 million in dividends. The company

Question:

Last year Breaking News Company earned $15 million, and it paid $6 million in dividends. The company follows a constant payout ratio policy. If the company would like to pay $8 million in dividends next year, how much must Breaking News earn?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...