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Boehm Corporation has had stable earnings growth of 9 % a year for the past 1 0 years, and in 2 0 1 9 Boehm
Boehm Corporation has had stable earnings growth of a year for the past years, and in Boehm paid dividends of $ million on net income of $ million. However, net income is expected to grow by in and Boehm plans to invest $ million in a plant expansion. This onetime unusual earnings growth won't be maintained, though, and after Boehm will return to its previous earnings growth rate. Its target debt ratio is Boehm has million shares of stock.
Calculate Boehm's dividend per share for under each of the following policies:
Its dividend payment is set to force dividends per share to grow at the longrun growth rate in earnings. Round your answer to the nearest cent.
$
It continues the dividend payout ratio. Round your answer to the nearest cent.
$
It uses a pure residual policy with all distributions in the form of dividends of the $ million investment is financed with debt Round your answer to the nearest cent.
$
It employs a regulardividendplusextras policy, with the regular dividend being based on the longrun growth rate and the extra dividend being set according to the residual policy. What will the extra dividend be Round your answer to the nearest cent.
$
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