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 |
If Zippy uses a constant payout ratio of 40% to calculate dividends, what is the divided per share for 2023?
Homework Answers
2023
Net Income = $135, 000
Dividend Payout Ratio = 40%
Total Dividend paid= $135, 000 * 40% = $54, 000
Total Number of Shares = 50,000
Dividend per share = Total Dividend / Total number of shares
= $54, 000 / 50,000 shares
= $1.08 per share
Hence, the dividend per share for 2023 is $1.08
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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...
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?
] Zippy Company has 50,000 shares of stock outstanding and projects the following net income over...
] 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 small regular dividend of $0.75 plus an extra 40% of profits when net income is higher than $100,000. What is the dividend payment for 2023?
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