As an alternative to maintaining the same dividend payout ratio, Brooks is considering maintaining the same per$-$share dividend in $2016$ that it paid in $2015.$ If it chooses this policy, what will be the company's dividend payout ratio in $2016?$ Round your answer to two decimal places.

Brooks Sporting Inc. is prepared to report the following $2016$ income statement $($shown in thousands of dollars$).$

Prior to reporting this income statement, the company wants to determine its annual dividend. The company has $510000$ shares of stock

outstanding, and its common stock trades at $$56$ per share. The data has been collected in the Microsoft Excel Online file below. Open the

spreadsheet and perform the required analysis to answer the questions below.$\%$

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?

A$.$ Since the company would like to avoid transactions costs involved in issuing new equity, it would be best for the firm to maintain a constant dividend payout ratio.

B$.$ Since the company would like to avoid transactions costs involved in issuing new equity, it would be best for the firm to maintain the same per$-$share dividend.