20,21,22

o will be the dividend he following year's earn- ED o be if the firm oration stock at a price of has the the zar December 1: dividend paid of $0.55 per share; stock price is so 20. If a stock's earnings per share are $2.00, what will be the per share if the payout ratio is 40 percent? If the following y ings per share are $2.10, what will the payout ratio be ifth wants to maintain dividend growth of 8 percent? 21. You purchased 200 shares of H2O Corporation stock at a $20. Consider each of the following announcements separately w will the price of the stock be after each change? How many shares you own? What will be the total value of your holdings (value of stock plus any income)? a. The firm announces a 10 percent stock dividend. b. The firm announces a two-for-one stock split. C. The firm announces a $0.50 per share dividend in your answer use the price of the stock on the ex-dividend date). d. The firm announces it will repurchase 10 percent of its shares: you do not offer to sell any of your shares. 22. The Fridge-Air Company's preferred stock pays a dividend of $4.50 per share annually. If the required rate of return on comparable quality preferred stocks is 14 percent, calculate the value of Fridge- Air's preferred stock. 23. The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe the nominal risk-free rs W