Nature's Escape sponsors outdoor adventures for people of all ages.The company has a cyclical dividend policy and a target payout ratio of 0.55.The estimated earnings per share for the next year,by quarter,are $1.20,$0.20,$1.80,and $1.40,respectively.Nature's Escape anticipates paying:

Question

Quizplus · Accepted Answer

To find the annual dividend, we need to first calculate the total earnings for the year by adding up the estimated earnings per share for each quarter:
$1.20 + $0.20 + $1.80 + $1.40 = $4.60
Next, we need to multiply the total earnings by the target payout ratio to get the total dividend amount for the year:
$4.60 x 0.55 = $2.53
Finally, to find the quarterly dividend amount, we divide the annual dividend amount by 4:
$2.53 / 4 = $0.6325
Therefore, the quarterly dividends for the next four quarters will be:
Q1: $0.66 per share
Q2: $0.11 per share
Q3: $0.99 per share
Q4: $0.77 per share
So, the best choice is C.

Nature's Escape Sponsors Outdoor Adventures for People of All Ages