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The board of Kopi Industries is considering a new dividend policy that would set dividends at 61% of earnings. The recent past has witnessed earnings
The board of Kopi Industries is considering a new dividend policy that would set dividends at 61% of earnings. The recent past has witnessed earnings per share (EPS) and dividends paid per share as follows: B. Based on Kopi's historical dividend payout ratio, discu whether a constant payout ratio of 61% would be suitable for the firm. The dividend payout ratio in 2016 is %. (Round to two decimal places.) The dividend payout ratio in 2017 is %. (Round to two decimal places.) The dividend payout ratio in 2018 is %. (Round to two decimal places.) The dividend payout ratio in 2019 is %. (Round to two decimal places.) Based on Kopi's historical dividend payout ratio and earnings history evidenced by EPS, would a constant payout ratio of 61% be suitable for the firm? (Select the best answer below.) Yes, because earnings appear to be growing and the average payout percentage has generally been close to 61%. O No, because Kopi Industry failed to pay out at least 61% of its earnings in two of the past four years. The board of Kopi Industries is considering a new dividend policy that would set dividends at 61% of earnings. The recent past has witnessed earnings per share (EPS) and dividends paid per share as follows: B. Based on Kopi's historical dividend payout ratio, discu whether a constant payout ratio of 61% would be suitable for the firm. The dividend payout ratio in 2016 is %. (Round to two decimal places.) The dividend payout ratio in 2017 is %. (Round to two decimal places.) The dividend payout ratio in 2018 is %. (Round to two decimal places.) The dividend payout ratio in 2019 is %. (Round to two decimal places.) Based on Kopi's historical dividend payout ratio and earnings history evidenced by EPS, would a constant payout ratio of 61% be suitable for the firm? (Select the best answer below.) Yes, because earnings appear to be growing and the average payout percentage has generally been close to 61%. O No, because Kopi Industry failed to pay out at least 61% of its earnings in two of the past four years
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