# Fiance applications

A stock’s 2009 Earnings-per-share is \$4.50. Its Payout Ratio is 30%. Next year in 2010 it expects its Earnings-per-share to be \$4.75. Answer the following two questions please, and select the correct choice:

1. What is the current 2009 dividend?
2. What will next year’s Payout Ratio be if the company want to maintain a dividend growth rate of 15%?

a. Dividend= \$1.35 and Payout Ratio= 30%
b. Dividend= \$1.20 and Payout Ratio= 32.6%
c. Dividend= \$1.20 and Payout Ratio= 30%
d. Dividend= \$1.35 and Payout Ratio= 32.6%

1. 👍 0
2. 👎 0
3. 👁 106
1. Why are you posting all these under different names? We are not going to take your test for you.

1. 👍 0
2. 👎 0

## Similar Questions

1. ### finance 200

· Complete the following problems (Do Not repeat the questions): 1. The Monley Corporation of New Jersey has gross profits of \$980,000 and \$260,000 in depreciation expense. The Majors Corporation of Nebraska also has \$980,000 in

asked by cari on March 25, 2010
2. ### finance

An investor estimates that next year’s sales for New World Products should amount to about \$75 million. The company has 2.5 million shares outstanding, gener- ates a net profit margin of about 5% , and has a payout ratio of 50%

asked by chris on May 24, 2012
3. ### math

An investor estimates that next year’s sales for New World Products should amount to about \$75 million. The company has 2.5 million shares outstanding, gener- ates a net profit margin of about 5% , and has a payout ratio of 50%

asked by angela on November 3, 2016
4. ### finance

1. The Monley Corporation of New Jersey has gross profits of \$980,000 and \$260,000 in depreciation expense. The Majors Corporation of Nebraska also has \$980,000 in gross profit, with \$60,000 in depreciation expense. Selling and

asked by victor on March 29, 2010
5. ### Intermediate Accounting

Information relating to the capital structure of Parke Corporation is as follows: ` December 31 2008 2009 Outstanding shares of: Common stock 90,000 90,000 Preferred stock, convertible into 30,000 shares of common 30,000 30,000

asked by cyndi on December 11, 2010
6. ### Finance

) If a stock pays a dividend of \$1.30 annually, has earnings-per-share of \$4.50, and closed yesterday at \$76.50, then which of the following statements is true? (Approximation is fine!) a. The dividend payout ratio is 82.8% b. The

asked by Vicky on March 14, 2010
7. ### Intermediate Accounting

During 2009 Bradley Corporation issued for \$110 per share, 5,000 share of \$100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Bradley’s \$25 par value common stock at the

asked by cyndi on December 11, 2010
8. ### investing

new millenium company's stock sells at a P/E ratio of 21 times earnings. it is expected to pay dividends of \$2 per share in each of the next 5 years and to generate an EPS of \$5 i year 5. using the dividends-and-earnings model and

asked by kenny on January 10, 2008
9. ### Finance

Colgate-Palmolive Company has just paid an annual dividend of \$0.85. Analysts are predicting a 10% per year growth rate in earnings over the next five years. After that, Colgate’s earnings are expected to grow at the current

asked by Debbie on July 30, 2011
10. ### finnce100

In late 2010, you purchased the common stock of a company that has reported significant earnings increases in nearly every quarter since your purchase. The price of the stock increased from \$ 12 a share at the time of the purchase

asked by jenny on November 25, 2014

More Similar Questions