Suppose Firm XYZ Paid a Dividend of $1 Per Share $\pi$

question 2

Multiple Choice

Suppose Firm XYZ paid a dividend of $1 per share last year, and this year's earnings per share was $3.The firm's target payout ratio is $\pi$ =0.50, and the value of the firm's speed of adjustment parameter is $\rho$ =0.3.What is the firm's expected dividend for this year?

• A)0.85
• B)1.00
• C)1.15
• D)1.30