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?
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$4.80
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$2.40
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$1.12
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$1.44
Homework Answers
Ans $ 4.80
Dividend = Earning Per share * ( 1 - Retention Ratio)
= 12 * ( 1 - 60%)
= $ 4.80
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