Question
If Wolves Entertainment Company is following the appropriate primary goal of firm managers, which of the following is the optimal (best) dividend per share for
If Wolves Entertainment Company is following the appropriate primary goal of firm managers, which of the following is the optimal (best) dividend per share for the firm? a. EPS = $2.95 Cost of Debt = 2.9% Debt ratio = 0% Dividend Per Share = $2.00 Market Value=6.9 million b. EPS = $3.18 Cost of Debt = 3.1% Debt ratio = 15% Dividend Per Share = $2.50 Market Value=6.6 million c. EPS = $3.39 Cost of Debt = 4.8% Debt ratio = 65% Dividend Per Share = $3.00 Market Value=6.3 million d. EPS = $3.54 Cost of Debt = 3.9% Debt ratio = 45% Dividend Per Share = $3.25 Market Value=6.1 million e. EPS = $3.24 Cost of Debt = 3.3% Debt ratio = 25% Dividend Per Share = $3.75 Market Value=5.9 million
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