A firm has had the indicated earnings per share over the last three years: (a) If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.
(b) If the firm's dividend policy was based on a fixed dollar payout policy of 50 cents per share plus an extra dividend equal to 75 percent of earnings per share above $1.00, determine the annual dividend for each year.

Question

A firm has had the indicated earnings per share over the last three years:  (a) If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.
(b) If the firm's dividend policy was based on a fixed dollar payout policy of 50 cents per share plus an extra dividend equal to 75 percent of earnings per share above $1.00, determine the annual dividend for each year.

Quizplus · Accepted Answer

The Answer of A firm has had the indicated earnings per share over the last three years:  (a) If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.
(b) If the firm's dividend policy was based on a fixed dollar payout policy of 50 cents per share plus an extra dividend equal to 75 percent of earnings per share above $1.00, determine the annual dividend for each year.

A Firm Has Had the Indicated Earnings Per Share Over