3. Bowles Sporting Inc. is prepared to report the following income statement (shown in thousands of dollars) for the year 2003: Sales $15,200 Operating costs including depreciation 11,900 EBIT $ 3,300 Interest 300 EBT $ 3,000 1,200 $ 1,800 Taxes (40%) Net income Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 500,000 shares of stock outstanding and its stock trades at $48 per share. (i) (ii) (iii) (iv) The company had a 40% dividend payout in 2002. If Bowles wants to keep this payout ratio in 2003, what will be its per-share dividend? 1 point If the company maintains this 40 percent payout ratio, what will be the current dividend yield on the company's stock? 1 point The company reported net income of $1.5 million in 2002. Assume that the number of shares outstanding has remained constant. What was the company's per-share dividend in 2002? 1 point As an alternative to maintaining the same dividend payout ratio, Bowles is considering maintaining the same per-share dividend in 2003 that it paid in 2002. If it chooses this policy, what will be the company's dividend payout ratio in 2003 1 point (v) Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? point 2