Cafe de Oro earns $4.25 per share and has a dividend payout ratio of 0.40. If Cafe de Oro has a capital budget of $200,000 and 70,000 shares outstanding, what are the annual dividends per share?

Question

Quizplus · Accepted Answer

The annual dividends per share can be calculated by multiplying the earnings per share (EPS) by the dividend payout ratio. Here, EPS is $4.25 and the payout ratio is 0.40. Thus, the annual dividends per share = $4.25 * 0.40 = $1.70.

Cafe De Oro Earns $4