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(Alternative dividend policles) Final earnings estimates for the Smithfield Meat Packing Company have been prepared for the CFO of the company and are shown in

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(Alternative dividend policles) Final earnings estimates for the Smithfield Meat Packing Company have been prepared for the CFO of the company and are shown in the following table: The firm has 7,300,000 shares of common stock outstanding. As assistant to the CFO, you are asked to determine the yearly dividend per share to be paid depending on the following possible policies: a. A stable dollar dividend targeted at 40 percent of earnings over a 5-year period. b. A small, regular dividend of 80.60 per share plus a year-end extra when the profits in any year exceed $20,000,000. The year-end extra dividend will equal 50 percent of profits exceeding $20,000,000 c. A constant dividend payout ratio of 35 percent. b. who a. What is the yearly dividend per share to be paid depending on a stable dollar dividend targeted at 40 percent of earnings for years 1 thra $ Data table hare plus a year-end extra Its exceeding $20,000,000 (Click on the following icon in order to copy its contents into a spreadsheet) YEAR PROFITS AFTER TAXES 1 $18,000,000 2 21,000,000 3 19,000,000 4 23,000,000 5 25,000,000 Print Done TOUTTO TO TOTICOTEST COTT c. Determine the yearly dividend per share that will be paid assuming a constant dividend payout ratio of 35 ercent. YEAR DIVIDEND 1 (Round to the nearest cent.) 1 (Allernative dividend policies) Final earnings estimates for the Smithfield Meat Packing Company have been prepared for the CFO of the company and are shown in the following table a. What is the yearly dividend per share to be paid depending on a stable dollar dividend targeted at 40 percent of comings for years 1 through 5? $per share (Round to the nearest cent.) b. Determine the yearly dividend per share to be paid depending on a smal, regular dividend of $0.60 per share plus a year-end extra when the profits in any year exoved $20,000,000. The year-end extra dividend will equal 50 percent of profits exceeding $20,000,000 YEAR DIVIDEND (Round to the nearest cent.) YEAR DIVIDEND (Round to the nearest cont.) YEAR DIVIDEND 3 (Round to the nearest cent.) YEAR DIVIDEND (Round to the nearest cont.) YEAR DIVIDEND 6 (Round to the nearest cent.) c. Determine the yearly dividend per share that will be paid assuming a constant dividend payout ratio of 35 ercent. 2 4 DIVIDEND YEAR 1 (Round to the nearest cent) DIVIDEND YEAR 2 (Round to the nearest cent) DIVIDEND YEAR 3 (Round to the nearest cont.) YEAR DIVIDEND Next DIVIDEND YEAR 1 (Round to the nearest cent.) DIVIDEND YEAR 2 (Round to the nearest cont) YEAR DIVIDEND 3 (Round to the nearest cent.) YEAR DIVIDEND 4 (Round to the nearest cent.) YEAR DIVIDEND 5 (Round to the nearest cent) c. Determine the yearly dividend per share that will be paid assuming a constant dividend payout ratio of 35 croent YEAR DIVIDEND 1 (Round to the nearest cont.) DIVIDEND YEAR 2 (Round to the nearest cent) YEAR DIVIDEND 3 (Round to the nearest cent) YEAR DIVIDEND 4 (Round to the nearest cont.) YEAR DIVIDEND 5 (Round to the nearest cont.) Next

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