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:

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for rapid action in response to threats.

Internal Organs

Vital parts within the body, such as the heart, lungs, and liver, that perform essential functions required for survival.

Serviceable Associated Habits

Habits that are beneficial or useful in performing daily activities or achieving long-term goals.

Darwin

Refers to Charles Darwin, a naturalist known for his theory of evolution through natural selection, which had a profound impact on the understanding of species development.