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In its annual report this year, Longevity Office Equipment, Inc.reported net earnings of $2,981 million and...

In its annual report this year, Longevity Office Equipment, Inc.reported net earnings of $2,981 million and dividends paid of $1,540 million. Your forecast of net income for next year is $3,130 million.

What are projected dividends for the company for next year?

Group of answer choices

$1,617 million

$1,540 million

$1,467 million

$1,000 million

None of these numbers is correct.

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Answer #1

Reported Net Earnings = $2,981 million

Dividends Paid = $1,540 million

Dividends per share = Dividends paid / Net Earnings = $1,540 million / $2,981 million

Dividends payout ratio = 0.5166 or 51.66%

Forecast of Net Income next year = $3,130 million

Dividends will be = $3,130 million * 0.5166

= $1,617 million

Projected dividends for the company for Next Year will be $1,617 million

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