Question
The Imperial Ice Co. has a 24% dividend payout ratio. It is currently paying a dividend of $2.80 and has a P/E ratio of 17.
The Imperial Ice Co. has a 24% dividend payout ratio. It is currently paying a dividend of $2.80 and has a P/E ratio of 17. Calculate the firms EPS and market price. Based on the market price calculated, what is the dividend yield? If the EPS goes to $9.80 and the firm cuts its payout ratio to 12%, how much current income per share will stockholders lose?
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
6th Edition
1259922316, 9781259922312
