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

Sales	$19800
Operating costs including depreciation	14652
EBIT	$5148
Interest	363
EBT	$4785
Taxes (40%)	1914
Net income	$2871

Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 330000 shares of stock outstanding, and its common stock trades at $49 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.

1. The company had a 50% 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.

   $

2. If the company maintains this 50% payout ratio, what will be the current dividend yield on the company's stock? Round your answer to two decimal places.

   %

3. The company reported net income of $2.55 million in 2015. Assume that the number of shares outstanding has remained constant. What was the company's per-share dividend in 2015? Round your answer to the nearest cent.

   $

4. 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.

   %

5. 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?

   1. 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.
   2. 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.

Brooks Sporting incl prepared to or the following 2016 income statement shown in thousands of data. Operating costs induding depreciation $19000 14552 Interest EBT Taxes (40) Nut income $5148 763 $4785 1914 $297 Prior to reporting the income statement the company wants to determinis dividend. The com has 110000 shares of stuck outstanding and its cock trades at $49 hrs. The data has been collected in the Micro Ettore below. Open the spreadsheet and perform the required analysis to answer the questions tek Open spreadsheet a. The company had a 50 dividend pwyt ratio in 2015. of Brooks wants to notinis payout ratio in 2010, what will be its per share divided in 2016 Round your answer to the nearestart 5 the company maintains the Sopra ratio, what will be the current dividend yield on the company steek? Rund your rower to two decimal places. - The corrany reported net income of $2.5 million in 2015. Assume that the tumber of stars outstanding and constant. What was the compow's per share dividend in 2017 Round your answer to the nearest cent. d. As an alternative to maintaining the same dividend payout ratio, Breaks is considering maintaining the same persone didend in 2016 that it is in 2015. Dit this policy, what be the companys dividend payouts in 2010 tould your wartodecimalla that the company is interested in dramatically expanding its operations and that this win will require significant amounts of catal. The comany would like to tractions custasimoved is kung maquity. Given this scenario would it make me for the company to main constant dividend payout rain arte maten the same per sharedvided Since the company would like to avoid transactions costs involved in issuing new equity it would be best for the fr to maintain the same per share dividend. IISince the company would like to avoid transactions crests inwolved in issuing new but it would be best for the firm to maintain a constant chuidend payout ratio