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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Qa 07.

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: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
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
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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