Calculate the Dividend Per Share That Is Paid When the Earnings

question 112

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)$0.51
• B)$0.71
• C)$0.90
• D)$5.10 Payout ratio = 1 - 0.85 = 0.15
• 0)15 = Dividend per share/$6

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Definitions:

Act-of-State Doctrine

A principle in international law that holds that a nation is sovereign within its own borders and its domestic actions cannot be questioned by the courts of another nation.

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