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Brooks Sporting Inc. is prepared to report the following 2016 income statement (shown in thousands of dollars) Sales Operating costs including depreciation EBET Interest EBT

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Brooks Sporting Inc. is prepared to report the following 2016 income statement (shown in thousands of dollars) Sales Operating costs including depreciation EBET Interest EBT Taxes (40%) Net income $16900 12168 $4732 297 $4435 1774 52661 Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 410000 shares of stock outstanding, and its common stock trades at $35 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 3. The company had a 55% dividend payout ratio in 2015. Ir 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. $ b. Ir the company maintains this $5% payout ratio, what will be the current dividend yield on the company's stock? Round your answer to two decimal places. c. The company reported net income of $2,45 million in 2015. Assume that the number of shares outstanding hos remained constant. What was the company's per share dividend in 2015 Round your answer to the nearest cent. d. 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. Irit chooses this policy, what will be the company's dividend payout ratio in 20167 Round your answer to two decimal places e. 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 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 E 40.00% 72.00% 410,000 $35.00 55.00% 1 Dividends 2 3 Dollars in Thousands: 4 Tax rate 5 Operating cost % 6 Common shares outstanding 7 Common stock price 8 Dividend payout ratio 9 10 Sales 11 Operating costs 12 EBIT 13 Interest 14 EBT 15 Taxes 16 Net income 17 18 Calculation of current per share dividend: 19 DPS, current year $16,900 12,168 $4,732 297 $4,435 1,774 $2,661 Formulas #N/A 20 #N/A 21 Current dividend yield calculation: 22 Current dividend yield 23 24 Calculation of last year's per share dividend: 25 Last year's net income 26 DPS last year 27 Calculation of dividend payout ratio based on 28 last year's per share dividend: 29 Dividend payout ratio on current net income 130 $2,450 #N/A #N/A Tweets Structured Adivity.de eksporting Inc. prepared to report on 2006 comment on the sands of dollars) Sales $100 Operating costs ang dapat 21 CRIT $4730 27 COT [40 1934 hat come Prior to reporting this content, the company wants terms. The cowa 410000 of common tres parte del colected in the rol in the hand perform the days the The companyada dividend 2015, for wants to manantis payouts 2016 what will be it per shared 2016 Round your answer to the nearest cert Wymas you to what will be the current identido de company's stod Round you to comples the company pure et com 21. une that the number of share what ng has renamed at what was there and your own to theast care mee te manterwehe ne dicond part where crederne menting the same persone dividend 2016 help themes the poter, what will be the crow indaputrabon wees that the camera calidad that was of the company would tatractions inwentar, martorte company to mancare divident payout tortor the same perheen De many more transactions and new the maconheidend you In the company to avod radio volved out, it would them man the sharedviden B C D 40.00% 72.00% 410,000 $35.00 55.00% 1 Dividends 2 3 Dollars in Thousands: 4 Tax rate 5 Operating cost % 6 Common shares outstanding Common stock price 8 Dividend payout ratio 9 10 Sales 11 Operating costs 12 EBIT 13 Interest 14 EBT 15 Taxes 16 Net income 17 18 Calculation of current per share dividend: 19 DPS, current year $16,900 12,168 $4,732 297 $4,435 1,774 $2.661 Formulas #N/A 20 21 Current dividend yield calculation: 22. Current dividend yield #N/A 23 $2,450 #N/A 24 Calculation of last year's per share dividend: 25 Last year's net income 26 DPS last year 27 Calculation of dividend payout ratio based on 28 last year's per share dividend: 29 Dividend payout ratio on current net income #N/A

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