Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P14-7 (similar to) Assigned Media Question Help Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in

image text in transcribed
image text in transcribed
image text in transcribed
P14-7 (similar to) Assigned Media Question Help Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the following table: a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual divide for 2015? b. If the firm had a dividend payout of $1.00 per share, increasing by 50.10 per share whenever the dividend payout fell below 50% for two consecutive years, whan annual dividend would the firm pay in 2015? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings bem $3.00 would be paid, what annual dividend would the firm pay in 2015? d. Discuss the pros and cons of each dividend policy described in parts a through c. a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, the annual dividend for 2015 is (Round to the nearest cent) vald Taure as of eac sy were -) the ans (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2019 2018 2017 2016 2015 Earnings per share $3.51 $3.14 $3.83 $2.71 $3.28 Year 2014 2013 2012 2011 2010 Earnings per share $3.98 $1.22 $1.88 - $1.26 $0.45 swer bal Print Done Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the following table: a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, what would be the annual dividend for 2015 b. If the firm had a dividend payout of 51.00 per share, increasing by 50.10 per share whenever the dividend payout fell below 50% for two consecutive years, what annual dividend would the firm pay in 2015? c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2015? d. Discuss the pros and cons of each dividend policy described in parts a through c. a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0% otherwise, the annual dividend for 2015 is SC (Round to the nearest cont.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Of Financial Institutions

Authors: George H Hempel

1st Edition

0133159604, 9780133159608

More Books

Students also viewed these Finance questions