C.) If the firms policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay each year? $ ___ (Round to the nearest cent)
D.)
P14-7 (similar to) Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the following table: - a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2018? b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2018? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2018? d. Discuss the pros and cons of each dividend policy described in parts a through c. a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, the annual dividend for 2018 is $ 1.39. (Round to the nearest cent.) . (Round to the b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, the annual dividend the firm would pay in 2018 is $ nearest cent.) 1 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Enter your answer in the answer box and then click Check Ang Year 2019 2018 2017 2016 2015 Earnings per share Year $3.99 2014 $3.47 2013 $3.71 2012 $2.93 2011 $3.67 2010 Earnings per share $2.78 $1.97 $1.96 - $1.38 $0.68 3 parts remaining Check Answer | 1:31 d. Which policy uses a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs? (Select the best answer below.) O A. The policy described in part b. OB. The policy described in part c. O C. The policy described in part a. Which policy uses a low-regular-and-extra dividend policy giving investors a stable income? (Select the best answer below.) O A. The policy described in part a. OB. The policy described in part c. OC. The policy described in part b. P14-7 (similar to) Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the following table: - a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2018? b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2018? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2018? d. Discuss the pros and cons of each dividend policy described in parts a through c. a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, the annual dividend for 2018 is $ 1.39. (Round to the nearest cent.) . (Round to the b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell below 50% for two consecutive years, the annual dividend the firm would pay in 2018 is $ nearest cent.) 1 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Enter your answer in the answer box and then click Check Ang Year 2019 2018 2017 2016 2015 Earnings per share Year $3.99 2014 $3.47 2013 $3.71 2012 $2.93 2011 $3.67 2010 Earnings per share $2.78 $1.97 $1.96 - $1.38 $0.68 3 parts remaining Check Answer | 1:31 d. Which policy uses a constant-payout ratio which will yield low or no dividends if earnings decline or a loss occurs? (Select the best answer below.) O A. The policy described in part b. OB. The policy described in part c. O C. The policy described in part a. Which policy uses a low-regular-and-extra dividend policy giving investors a stable income? (Select the best answer below.) O A. The policy described in part a. OB. The policy described in part c. OC. The policy described in part b
