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A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She anticipates no payout of earnings

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A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She anticipates no payout of earnings in the form of cash dividends during the development stage (1). During the growth stoge (ii), she anticlpotes 10 percent of earnings wili be distributed as dividends. As the firm progresses to tho expansion stage (ili), the payout ratio will go up to 31 percent and wilf eventually reach 52 percent during the maturity stage (IV). a. Assuming earnings pershare will be as follows during each of the four stages, indicate the cash dividend per share (if any) during each stoge, Note: Leave no cells blank - be certain to enter " O " wherever required. Do not round intermediate calculations and round your answers to 2 decimal ploces. b. Assurne in Stage N that an investor owns 330 shares and is in a 15 perceof tax bracket. What wilt be the investor's aftertax incorne from the cash dividend? Note Do not round intermediate caleulations and round your nnswer to 2 decimal places. C. In what two stages is the firm most likely to utilize stock dividends or stock splits? Note: Select two answers. Single click the box with the question mark to produce s check mark for a correct answer and double b. Assume in Stage IV that an investor owns 330 shares and is in a 15 percent tax bracket What will be the investor's aftertax income from the cash dividend? Note: Do not round intermediate calculations and round your answer to 2 decimal places. c. In what two stages is the firm most likely to utilize stock dividends or stock splits? Note: Select two answers. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for o wrong answer. Stoge 1 Stoge II Stoge ill Stage IV Peabody Mining Company's common stock is selling for $50 the day before the stock goes ex-dividend. The annual dividend yield is 57 percent, and dividends are distributed quarterly. Ignore taxes. a, Based solely on the impact of the cash dividend, by how much should the stock go down on the ex-dividend date? Note: Do not round intermediate calculations and round your answer to 2 decimal places. b. What will the new price of the stock be? Note: Do not round intermediate calculations and round your answer to 2 decimal places

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