Complete Q5 part a and b please
Question 5 (this question has three parts a) and b)) (3+(1+1+3) = 8 marks)|| . What is the dividend per share on 31 Dec 2019? Parta) Answer: The following chart shows earnings and dividend growth of Woolworths group from 2016 to 2020. Why do you think the dividend growth has less volatility than earnings growth? Explain clearly. 2 0.14 0.12 1.5 ii. What is the dividend per share on 31 Dec 2020? 01 0.08 0.06 0.04 0.02 Answer: 0 0 2016 2017 2018 2019 2020 Earnings Dividends iii. How does the dividend per share on 31 Dec 2020 affect the old shareholders? Explain clearly. Answer: Answer: Part b) Globex Corp. has 1000 shareholders as of 31 Dec 2019. On that date Globex Corp released its earnings. The earnings for the period is $1 million. The management decided to distribute all the earnings to the shareholders. On 25th March 2020 Globex Corp issued another 1000 shares to a new set of shareholders. On 31 Dec 2020 Globex Corp reported earnings of $1 million. The management again decided to distribute all its profit to shareholders. Question 5 (this question has three parts a) and b)) (3+(1+1+3) = 8 marks)|| . What is the dividend per share on 31 Dec 2019? Parta) Answer: The following chart shows earnings and dividend growth of Woolworths group from 2016 to 2020. Why do you think the dividend growth has less volatility than earnings growth? Explain clearly. 2 0.14 0.12 1.5 ii. What is the dividend per share on 31 Dec 2020? 01 0.08 0.06 0.04 0.02 Answer: 0 0 2016 2017 2018 2019 2020 Earnings Dividends iii. How does the dividend per share on 31 Dec 2020 affect the old shareholders? Explain clearly. Answer: Answer: Part b) Globex Corp. has 1000 shareholders as of 31 Dec 2019. On that date Globex Corp released its earnings. The earnings for the period is $1 million. The management decided to distribute all the earnings to the shareholders. On 25th March 2020 Globex Corp issued another 1000 shares to a new set of shareholders. On 31 Dec 2020 Globex Corp reported earnings of $1 million. The management again decided to distribute all its profit to shareholders
