Calculate the Dividend Per Share That Is Paid When the Earnings

question 2

Multiple Choice

Calculate the dividend per share that is paid when the earnings per share are $6.00 and plowback ratio is 0.85.

• A)$1.14/share
• B)$1.05/share
• C)$0.90/share
• D)$0.85/share Payout ratio = 1 - 0.85 = 0.15
• 0)15 = Dividend per share/$6

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