Ripper Filtration Inc A)$055
B)$0

Ripper Filtration Inc. designs domestic water filters that remove fluoride. Selected financial data is provided in the table below. Ripper is trying to set the dividend for the Year 2 using the target payout model. Selected Financial Information
Ripper Filtration Inc.
$$\begin{array} { | c | c | } \hline \text { Dividend per share (Year 1) } & \$ 0.55 \\\hline \text { Target payout ratio } & 20 \% \\\hline \text { Earnings per share (Year 1) } & \$ 1.80 \\\hline \text { Earnings per share (Year 2) } & \$ 2.45 \\\hline \text { Adjustment Factor } & 1 \\\hline\end{array}$$

A) $0.55
B) $0.57
C) $0.59
D) $0.64
E) $0.68