Part III. The following summary of the payout, dividend yield, and basic earnings per share ratios is available for a three-year period for Acadian Timber Corp.:

Instructions

a. Using the information provided above, determine the dividends declared and paid per common share in each year (assume there were no preferred share dividends). (Hint: You can determine dividends per share by using basic earnings per share and the payout ratio.)

b. Do you think most companies would reduce dividends declared on common shares when basic earnings per share declines? Why or why not?

c. Derive the companys market share price at the end of each of the three years shown above by using the common dividends per share calculated in part (a) above and the dividend yield provided. Why do you think that the companys dividend yield decreased in 2021?

d. If you were an investor looking for dividend income, would you be happy with Acadians dividend policy? Explain.

Part III. The following summary of the payout, dividend yield, and basic earnings per share ratios is available for a three-year period for Acadian Timber Corp.: Instructions a. Using the information provided above, determine the dividends declared and paid per common share in each year (assume there were no preferred share dividends). (Hint: You can determine dividends per share by using basic earnings per share and the payout ratio.) b. Do you think most companies would reduce dividends declared on common shares when basic earnings per share declines? Why or why not? c. Derive the company's market share price at the end of each of the three years shown above by using the common dividends per share calculated in part (a) above and the dividend yield provided. Why do you think that the company's dividend yield decreased in 2021 ? d. If you were an investor looking for dividend income, would you be happy with Acadian's dividend policy? Explain