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Brooks Sporting Inc. is prepared to report the following 2016 income statement (shown in thousands of dollars). Sales $11700 Operating costs induding depreciation 8541 EBIT
Brooks Sporting Inc. is prepared to report the following 2016 income statement (shown in thousands of dollars). Sales $11700 Operating costs induding depreciation 8541 EBIT $3159 Interest 264 EBT $2895 Taxes (40%) 1158 Net income $1737 Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 440000 shares of stock outstanding, and its common stock trades at $43 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. 2 11 Open spreadsheet a. The company had a 25% dividend payout ratio in 2015. If Brooks wants to maintain this payout ratio in 2016, what will be its per-share dividend in 2016? Round your answer to the nearest cent. $ 9.16 x 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. 1.50 86% C. The company reported net income of $1.55 million in 2015. Assume that the number of shares outstanding has remained constant. What was the company's per-share dividend in 20157 Round your answer to the nearest cent. $ 1.13 d. As an alternative to maintaining the same dividend payout ratio, Brooks is considering maintaining the same per-share dividend in 2016 that it pald in 2015. If it chooses this policy, what will be the company's dividend payout ratio in 20167 Round your answer to two decimal places 11.94%
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