The Pawtucket Brewery Uses the Residual Dividend Model to Set

question 33

Multiple Choice

The Pawtucket Brewery uses the residual dividend model to set its dividends. Selected financial information for Pawtucket is provided in the table below. What is Pawtucket's dividend per share? Selected Financial Information
Pawtucket Brewery
$$\begin{array} { | c | c | } \hline \text { Net income } & \$ 75 \text { million } \\\hline \text { Investments } & \$ 110.25 \text { million } \\\hline \text { Equity capital structure weight } & 0.75 \\\hline \text { Shares Outstanding } & 42.5 \text { million } \\\hline\end{array}$$

• A)-$0.18
• B)$0
• C)$0.18
• D)$0.25
• E)$0.36

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Definitions:

Behaviorism

Behaviorism is a theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing observable behaviors over internal states.

Directly Observed

Pertains to an event or behavior watched or noted in person, without relying on indirect evidence or reports.

Psychoanalytic Theory

The idea that our thoughts and actions are influenced by specific unconscious forces.

Unconscious Mind

A part of the mind that influences thoughts and actions without one's awareness, according to Freudian theory.