Question
The Claustrophobic Solution, Inc., a residential window and door manufacturer, has the following historical record of earnings per share (EPS) from 2011 to 2007: 2011
The Claustrophobic Solution, Inc., a residential window and door manufacturer, has the following historical record of earnings per share (EPS) from 2011 to 2007:
2011 | 2010 | 2009 | 2008 | 2007 | |
EPS | $1.10 | $1.05 | $1.00 | $0.95 | $0.90 |
The companys payout ratio has been 60% over the last five years and the last quoted price of the firms share of stock was $12. Flotation costs for new equity will be 6%. The company has 32,000,000 of common shares of stock outstanding and a debt-equity ratio of 0.5.
If dividends are expected to grow at the same arithmetic average growth rate of the last five years, what is the dividend payment in 2012
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