Brooks Sporting Inc. is prepared to report the following 2036 income statement (shown in thousands of dollars), Sales $19400 Operating costs including deprecation 13774 EBIT 55626 Interest EBT $5395 Taxes (40%) 2158 Net income 53237 231 Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 350000 shares of stock outstanding, and its common stock trades at $51 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, X Open spreadsheet The company had a 45 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 cont. $ b. If the company maintains this 45 pavout ratio, what will be the current dividend uild on the company's stock Round your answer to two decimal plooms C. The company reported net income of $3 mition in 2015. Assume that the number of shares outstanding has remained constant. What was the companys per share vidend in 20157 Round your answer to the nearest cent. Open spreadsheet a. The company has a 45% duidend payout ratio in 2015. If Brooks wants to maintain this payout ratio in 2016, what will be s per share dividend in 20167 Round your answer to the nearest cent. $ b. If the company maintains this 45% 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 $3 million in 2015. Assume that the number of stures outstanding has remained constant. What was the company's pershare dividend in 20157 Round your answer to the nearest cent 5 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. If it chooses this policy, what wil be the company's dividend payout ratio in 2016? Round your answer to two decimal places e Astume 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 make more sense for the company to maintain a constant dividend payout ratio or to maintain the same pershare dividend? 1. Since the company would like to avoid transactions costs involved in song new equity, it would be best for the firm to maintain a constant dividend payout ratio. II. Since the comany would like to avoid transactions costs involved in long new equity would be best for them to mantan the same pershare dividend
