Question
A company uses a residual dividend policy and 0.5 debt to equity ratio. There are 50 million shares outstanding. The company plans to borrow $20
A company uses a residual dividend policy and 0.5 debt to equity ratio. There are 50 million shares outstanding. The company plans to borrow $20 million in new debt. IF earnings per share is $1, calculate the Dividend per share.
Step by Step Solution
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Step: 1
To calculate the dividend per share we need to determine the total amount of dividends to be paid an...
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
