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

been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

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b$.$ If the company maintains this $25\%$ payout ratio, what will be the current dividend yield on the company's stock? Round your answer to two decimal places.

$\%$

the nearest cent.

$

company's dividend payout ratio in $2016?$ Round your answer to two decimal places.

$\%$

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?

I. 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.

II$.$ 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.