Smith Motors Inc

Smith Motors Inc.manufactures,distributes,and services automotive parts and engines worldwide.Smiths' income statement for the year just ending is shown below.Assume that today is the first day of Year 2 and that Smith's common shares are trading at a price of $68.In its most recent Management Discussion and Analysis (MD&A) Smith's management forecast earnings-per-share of $6 for Year 2.If Smith maintains its Year 1 payout ratio,then what will the dividend (per share) be in Year 2?
Smith Motors Inc.
Income Statement
Year 1 ($000,000's)

A) $0.77
B) $1.06
C) $1.44
D) $1.86
E) $2.06