The last reported earnings for Blue Tech were $2.40 last year and earnings are expected to grow at 6% indefinitely. If their dividend policy is to pay out 40% of earnings in dividends, what is next year's dividend?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 3P: Smiley Corporations current sales and partial balance sheet are shown here. Sales are expected to...
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kindly help me with accounting question

The last reported earnings for Blue Tech were $2.40 last
year and earnings are expected to grow at 6% indefinitely.
If their dividend policy is to pay out 40% of earnings in
dividends, what is next year's dividend?
Transcribed Image Text:The last reported earnings for Blue Tech were $2.40 last year and earnings are expected to grow at 6% indefinitely. If their dividend policy is to pay out 40% of earnings in dividends, what is next year's dividend?
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