A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. Sheanticipates no payout of earnings in the form of cash dividends during the development stage (I). During the growth stage (II),she anticipates 15 percent of earnings will be distributed as dividends. As the firm progresses to the expansion stage (III), thepayout ratio will go up to 33 percent and will eventually reach 57 percent during the maturity stage (IV).a. Assuming earnings per share will be as follows during each of the four stages, indicate the cash dividend per share (if any)during each stage. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculationsand round your answers to 2 decimal places.)Stage IStage IIStage IIIStage IVStage IStage IIStage IIIStage IV$ 0.301.852.603.80Aftertax incomeDividendsb. Assume in Stage IV that an investor owns 335 shares and is in a 15 percent tax bracket. What will be the investor's aftertaxincome from the cash dividend? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Earning per share = This can be computed by dividing the company return available to common stock…

Answered: A financial analyst is attempting to…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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