Financial Managment

(Alternative dividend policies) Final earnings estimates for the Smithfield Meat Packing Company have been prepared for the CFO of the company and are shown in the following table. The firm has 7,600,000 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 small, regular dividend of $0.60 per share plus a year-end extra when the profits in any year exceed $21,000,000 The year-end extra dividend will equal 50 percent of profits exceeding $21,000,000 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 52 per share (Round to the nearest cent) Enter your answer in the answer box and then click Check Answer. 10 parts remaining Clear All Check Answer (Alternative dividend policies) Final earnings estimates for the Smithfield Meat Packing Company have been prepared for the CFO of the company and are shown in the following table: The firm has 7 600,000 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 small, regular dividend of $060 per share plus a year-end extra when the profits in any year exceed S21,000,000. The year-end extra dividend will equal 50 percent of profits exceeding $21,000,000 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 Data Table - X (Click on the following icon in order to copy its contents into a spreadsheet.) YEAR 1 2 3 4 5 PROFITS AFTER TAXES $19,000,000 22,000,000 20,000,000 24,000,000 26,000,000 Enter your answ Print Done 10 parts remaining Clear All Check