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

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Definitions:

Patch Technique

A method in electrophysiology that involves sealing a tiny glass pipette onto a small patch of cell membrane to study ion channels.

Microelectrode

A very small electrode used to measure electrical activity in tissues such as the brain or muscles, often in neuroscience research.

Axon

A long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.

Electroencephalogram

A diagnostic test that measures electrical activity in the brain using small electrodes attached to the scalp.