Dividend Policy

All calculations must be shown. EXCEL spreadsheets may be a good tool to use.

Center Point Energy is a local regulated electric distribution utility and has paid a steady dividend over the years. Amazon.Com is an Internet Retailer and a relative new company with steady growth.

In this assignment, you will calculate the possible distribution amount using the Residual Distribution Model method (Chap 14). Show all components used.

Go to the SEC EDGAR web site (www.sec.gov/index.htm), locate FILINGS and;

Go to Center Point Energy 0000048732

Find most recent 10-K report (hint: Dec 31, 2016)

From the consolidated financial statements, retrieve the necessary information to calculate the distribution paid using the Residual Model.

From this calculation, what is the dividend per share?

What was the actual dividend paid (annualized)?

Go to Amazon.Com, Inc. 0001018724

Find most recent 10-K report (hint: Dec. 31, 2016)

From the consolidated financial statements, retrieve the necessary information to calculate the distribution paid using the Residual Model.

From this calculation, what is the dividend per share?

What was the actual dividend paid (annualized)?