Question

Drone Inc. had earnings of $1.00, $1.25, and $4.00 per share and a dividend policy that resulted in annual dividends per shar
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Dividend Payout Ratio = 0.40/1 = 40%

So,

Dividend next year = 6(0.40) = $2.40

Dividend Next year = $2.40

Please "Like" if you find this useful and comment if yo u have any doubts,

Add a comment
Know the answer?
Add Answer to:
Drone Inc. had earnings of $1.00, $1.25, and $4.00 per share and a dividend policy that resulted in annual dividend...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Pizza Inc. had earnings of $1.00, $1.25, and $4.00 per share and a dividend policy that...

    Pizza Inc. had earnings of $1.00, $1.25, and $4.00 per share and a dividend policy that resulted in annual dividends per share of $0.40, SO.50, and $1.60 for the past three years. The company anticipates maintaining the same dividend policy this year and also anticipates an increase in earnings to $6.00 per share this year. What dividend do you expect Pizza Inc. to pay in the next year? a $2.40. b. $3.20 c. $3.80. d. $4.80

  • Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in the following tabl...

    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 2017? 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...

  • The Francis Company is expected to pay a dividend of D1 = $1.25 per share at...

    The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 0.85, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price?

  • Alternative dividend policies Given the earnings per share over the period 2012 2019 shown in the...

    Alternative dividend policies Given the earnings per share over the period 2012 2019 shown in the to owing table determine the annual dividend por share under each of the policies set forth in parts a through d a Payout 50% of eamings in all years with positive earnings b. Pay $0.50 per share and increase to $0.50 per share whenever earnings per share rise above $0.90 per share for two consecutive years c. Pay 50 50 per share except when...

  • Alternative dividend policies Over the last 10​ years, a firm has had the earnings per share...

    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 2016​? 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...

  • Alternative dividend policies Given the earnings per Share over the period 2012-2019 shown in the following...

    Alternative dividend policies Given the earnings per Share over the period 2012-2019 shown in the following table, ma determine the annual dividend per share under each of the policies se a. Pay out 60% of earnings in all years with positive earnings b. Pay $0.40 per share and increase to 50.50 per share whenever earnings per share rise above 50 90 per share for two consecutive years c. Pay $0.40 per share except when earnings exceed 51,00 per share, in...

  • Market expects Bravo, Inc. to have a return on equity of 15%, with an earnings per share of $12. And, the company plan t...

    Market expects Bravo, Inc. to have a return on equity of 15%, with an earnings per share of $12. And, the company plan to reten 60% of its earnings each year. What is the company's dividend in the coming year? $4.80 $2.40 $1.12 $1.44

  • 19. Johnson Products earned $2.80 per share last year and paid a casa dividend of $1.25...

    19. Johnson Products earned $2.80 per share last year and paid a casa dividend of $1.25 per share. It the Return on Equity (ROE) was 15 percent, estimate the sustainable growth rate. A. Less than 4.00% B. 4.00% to 6.00% C. 6.00% to 8.00% D. 8.00% to 10.00% E. More than 10.00%

  • Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 = 4.00)....

    Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 = 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 = .20) and at a rate of 10 percent the following year (that is, g2 = .10). Thereafter (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required rate of return on...

  • 32. Spring Break, Inc. just paid an annual dividend (DC) of $2.00 per share on earnings...

    32. Spring Break, Inc. just paid an annual dividend (DC) of $2.00 per share on earnings of $3.00. You expect the firm's dividends to grow at 25% over the next two years based on its expansion plans. After that you expect dividends to grow at the industry average of 6% per year. The riskfree rate is 4%, the market risk premium is 5%, and its beta is 1.1. a) What is the discount rate? (2 pts) b) What is the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT