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(Dividend policies) Final earnings estimates for Chilean Health Spa& Fitness Center have been prepared for the CFO of the company and are shown in the
(Dividend policies) Final earnings estimates for Chilean Health Spa& Fitness Center have been prepared for the CFO of the company and are shown in the following table: EB. The firm has 7,500,000 shares of common stock outstanding. As assistant to the CFO, you are asked to determine the yearly dividend per share to be paid depending on the following possible policies a. A stable dollar dividend targeted at 40 percent of earnings over a 5-year period. b. A smal, regular dividend of $0.50 per share plus a year-end extra when the profits in any year exceed $19,000,000. The year-end extra dividend will equal 50 percent of profits exceeding $19,000,000 c. A constant dividend payout ratio of 35 percent a. What is the yearly dividend per share to be paid depending on a stable dollar dividend targeted at 40 percent of earnings for years 1 through 5? per share (Round to the nearest cent.) b. Determine the yearly dividend per share to be paid depending on a small, regular dividend of $0.50 per share plus a year-end extra when the profits in any year exceed $19,000,000. The year-end extra dividend will equal 50 percent of profits exceeding $19,000,000 YEAR DIVIDEND Round to the nearest cent.) Data Table YEAR DIVIDEND Round to the nearest cent) YEAR PROFITS AFTER TAXES $17,000,000 20,000,000 18,000,000 22,000,000 24,000,000 YEAR DIVIDEND (Round to the nearest cent.) YEAR 4 YEAR DIVIDEND $(Round to the nearest cent.) (Click on the icon locafed on the top-right corner of the data fable above in order to copy its contents into a spreadsheet) DIVIDEND Round to the nearest cent.) c. Determine the yearly dividend per share that will be paid assuming a constant dividend payout ratio of 35 ercent. Print Done YEAR DIVIDEND $(Round to the nearest cent) YEAR DIVIDEND (Round to the nearest cent.) YEAR DIVIDEND
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