Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . Examine how much Apple Inc has paid in dividends over the past year. [ Hint: Obtain the dividends paid by Apple inc, both

1. Examine how much Apple Inc has paid in dividends over the past year. [Hint: Obtain the dividends paid by Apple inc, both in aggregate terms and on a per-share basis. Also, split these dividends into ordinary and special dividends each period.
Provide a brief description of the dividend history of the firm (when did the firm start paying dividends? how much was the initial dividend? how did it increase over time? etc.... If the firm does not pay dividends, then using information provided by the firm or your own assessment explain why).
Specify the amount of dividends paid last year in both aggregate and a per-share basis. If the firm has paid a special dividend last year, then split the dividend paid into ordinary and special dividend.
2. Estimate the proportion of net income paid out as dividends (dividend payout ratio) over the period as well as dividends as percentage of the market value of equity (dividend yield).
Estimate the dividend payout ratio and the dividend yield.
3. Should Apple Inc. continue with the current dividend policy or should it increase/decrease its dividend payout rate? Justify your recommendation based on your knowledge of the dividend policy and the reasons why firms decide to distribute a dividend or not.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Quantitative Finance And Risk Management

Authors: Cheng-Few Lee, John Lee

2010th Edition

0387771166, 978-0387771168

More Books

Students also viewed these Finance questions