What should be cre s dividend payout ratio this year ?? Coral Reef Excursions (CRE) expects to grow at a constant rate of 5 percentindefinitely. Its target debt/assets ratio is 35 percent, and it expects to haveprofitable investments of $2.4 million this year. CRE plans to continue paying thesame dividend of $1.75 per share that it has paid for the past 8 years. The companyhas 800,000 shares of stock outstanding. If net income is expected to be $3.2million, what should be CRE's dividend payout ratio this year?

Total dividend = Dividend per share * Number of shares outstandingTotal dividend = 1.75*80,000Total…

Answered: Coral Reef Excursions (CRE) expects to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 4P

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