Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year 2022 2021 2020 2019 2018 Earnings per share $3.43 $4.26 $3.52 $2.32 $4.44 Print Year 2017 2016 2015 2014 2013 Done Earnings per share $3.32 $1.47 $1.64 -$1.04 $0.85
Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year 2022 2021 2020 2019 2018 Earnings per share $3.43 $4.26 $3.52 $2.32 $4.44 Print Year 2017 2016 2015 2014 2013 Done Earnings per share $3.32 $1.47 $1.64 -$1.04 $0.85
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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A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Question
Qa 07.

Transcribed Image Text:Data table
(Click on the icon here in order to copy the contents of the data table below
into a spreadsheet.)
Year
2022
202
2020
2019
2018
Earnings per share Year
2017
2016
2015
2014
2013
$3.43
$4.26
$3.52
$2.32
$4.44
Print
Done
Earnings per share
$3.32
$1.47
$1.64
- $1.04
$0.85
X
with
ene
shar
nd w
with p

Transcribed Image Text:Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the
following table:
a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0%
otherwise, what would be the annual dividend for 2019?
b. If the firm had a dividend payout of $1.00 per share, increasing by $0.10 per share whenever the dividend payout fell
below 50% for two consecutive years, what annual dividend would the firm pay in 2019?
c. If the firm's policy were to pay $0.50 per share each period except when earnings per share exceed $3.00, when an
extra dividend equal to 80% of earnings beyond $3.00 would be paid, what annual dividend would the firm pay in 2019?
d. Discuss the pros and cons of each dividend policy described in parts a through c.
+
a. If the firm's dividend policy were based on a constant payout ratio of 40% for all years with positive earnings and 0%
otherwise, the annual dividend for 2019 is $. (Round to the nearest cent.)
Incorr
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