Emerson Inc

question 6

Multiple Choice

Emerson Inc.'s would like to undertake a policy of paying out 45% of its income.Its latest net income was $1,250,000, and it had 225,000 shares outstanding.What dividend per share should it declare?

• A) $2.14
• B) $2.26
• C) $2.38
• D) $2.50
• E) $2.63

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Definitions:

Equity Method

An accounting method for recording investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net income or loss.

Partial Equity Method

An accounting approach used for investments in associates where the investment is recorded at cost and adjusted for the investor's share of profit or losses.

Initial Value Method

An accounting method that records investments at their original purchase cost without adjusting for changes in market value.

Net Position

Net Position represents the difference between an entity's assets and liabilities, indicating the financial health or net worth of an entity.