Nova Earned $7

question 53

Multiple Choice

Nova earned $7.20 per share and maintains a stable payout ratio of 60%. Nova has 1,000,000 shares outstanding and a capital budget of $5 million. If Nova maintains a debt ratio of 0.50, what were the dividends per share?

• A) $4.32
• B) $2.88
• C) $2.20
• D) Cannot be determined from the information provided

---

Definitions:

Teenagers

Individuals who are in the age group of 13 to 19 years old, navigating the transition from childhood to adulthood.

Status Quo Bias

A cognitive bias that causes people to prefer things to stay the same by doing nothing or by sticking with a decision made previously.

Decision-Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving elements of judgment and reasoning.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards, leading to a preference for sooner over later outcomes.