Bavarian Brewhouse Dividend
Bavarian Brewhouse had earnings per share of $2.50 in 2004 and paid out a dividend per share of $1.45 that same year. Earnings per share are expected to be $3.25 in 2005.

-If Bavarian Brewhouse follows a constant nominal dividend policy what will be the dividend per share in 2005?

Question

Bavarian Brewhouse Dividend
Bavarian Brewhouse had earnings per share of $2.50 in 2004 and paid out a dividend per share of $1.45 that same year. Earnings per share are expected to be $3.25 in 2005.

-If Bavarian Brewhouse follows a constant nominal dividend policy what will be the dividend per share in 2005?

Quizplus · Accepted Answer

Under a constant nominal dividend policy, a company pays out the same dividend amount per share each year, regardless of its earnings. Since Bavarian Brewhouse paid a dividend of $1.45 per share in 2004, it will pay the same amount in 2005 if it follows this policy.

Bavarian Brewhouse Dividend Bavarian Brewhouse Had Earnings Per Share of $2.50 in 2004