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A firm with net income (NI) of $500,000 pays 48% of its NI in dividends (thus, the dividend payout ratio is 0.48). If the firm
A firm with net income (NI) of $500,000 pays 48% of its NI in dividends (thus, the dividend payout ratio is 0.48). If the firm has 150,000 shares of common stock outstanding, what is the dividend paid per share of stock? [HINT: Use this definition for dividend paid per share (DPS): DPS = (dividend payout ratio)(NI)
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