Question
PROBLEM: The Costco Wholesale Corporation (COST) operates membership warehouses that offer a wide variety of branded and private label products in no-frills, self-service warehouse facilities.
PROBLEM:
The Costco Wholesale Corporation (COST) operates membership warehouses that offer a wide variety of branded and private label products in no-frills, self-service warehouse facilities. In 2008 the company paid total cash dividends of $265,029,000 and had net income of $1,282,725,000.
a. What was the firm's dividend payout ratio?
b. If Costco were to earn $1.55 billion in 2009 and maintained the same dividend payout ratio that it paid in 2008, what would the firm's dividends be?
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QUESTIONS:
(A).The firm's dividend payout ratio was (?)%. (Round to two decimal places.)
(B).The firm's dividends in 2009 would be (?)$. (Round to the nearest dollar.)
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