Felicity Trust Has a Dividend Cover Ratio of 5

question 13

Multiple Choice

Felicity Trust has a dividend cover ratio of 5.0 on net income of $6.3 million. The company's EPS is $2.10 and its cum dividend price is $22.50. What is the expected ex dividend price of the shares?

• A) $18.00
• B) $20.82
• C) $21.24
• D) $22.08
• E) 27.00

---

Definitions:

West's Key-Number System

A comprehensive system used for organizing American case law by topic, allowing lawyers and researchers to find relevant cases easily.

Case Law

The law as established by the outcome of former cases, serving as an important source of legal precedent for future disputes.

Statute

A written law passed by a legislative body at the federal or state level, formally codified and enacted.

Required Action

Specific steps or measures mandated to be taken in a given situation or to achieve a designated outcome.