Zippy Company has 50,000 shares of stock outstanding and projects the following net income over the...

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Zippy Company has 50,000 shares of stock outstanding and projects the following net income over the...

Zippy Company has 50,000 shares of stock outstanding and projects the following net income over the next four years.

Year	Net Income
2020	$90,000
2021	$120,000
2022	$85,000
2023	$135,000

Zippy pays a stable dollar dividend of 40% over the four years. What is the divided per share for 2023?

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Answer 1

Answer #1

Given,

Shares outstanding = 50000 shares

Net income for 2023 = $135000

Dividend payout rate = 40%

Solution :-

Dividend per share for 2023

= (Net income for 2023 x dividend payout rate)/shares outstanding

= ($135000 x 40%)/50000 shares

= $54000/50000 shares

= $1.08

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Answer 2

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Zippy Company has 50,000 shares of stock outstanding and projects the following net income over the...

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