Question
Origin Energy has just announced its profits for 20212021. It has been a good year, with the firm having earned a 24.424.4% return on the
Origin Energy has just announced its profits for 20212021. It has been a good year, with the firm having earned a 24.424.4% return on the retained profits that it invested in new projects. It tells investors that it will shortly be paying out 27.927.9% of these earnings to them through a cash dividend of $$62.962.9 per share. Anticipating the investors might be unhappy with such a sharp drop from the 81.581.5% of its profits that they returned to investors in 20202020, the firm explains that this decrease is due to it currently having significantly more profitable investment opportunities as this time. A combination of lighter government regulation and subsidies for renewable energy market investment have given an unforeseen boost to their sector. Origin Energy believes that this coming year it will be able to increase its profitability even further. A combination of the continued impact of the previously mentioned factors with further economic stimulus from the government will see its return on new investments increase to 27.327.3%.
Complete the following statements using the information above:
(a) Origin Energy paid a $$ dividend per share to its shareholders in 20202020. (Round your answer to the nearest cent) (Use the unrounded value of this answer in any subsequent questions that require it)
(b) The dividend the investors receive from Origin Energy this year will have (No answer given)shrunkenincreased by % compared to the dividend they received in 20202020. (Round your answer to 2 decimal places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started