Trevor Co'S Future Earnings for the Next Four Years Are Predicted

question 157

Essay

Trevor Co.'s future earnings for the next four years are predicted below.Assuming there are 500,000 shares outstanding,what will the yearly dividend per share be if the dividend policy is:
a.a constant payout ratio of 40%
b.stable dollar dividend targeted at 40% of the average earnings over the four-year period
c.small,regular dividend of $0.75 plus a year-end extra of 40% of profits exceeding $1,000,000

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Definitions:

Floods

Natural disasters characterized by the overflow of water onto land that is normally dry, often caused by heavy rainfall, storm surges, or the melting of snow and ice.

Droughts

Extended periods of unusually low precipitation leading to a shortage of water.

Human-Activated

Refers to processes or systems that require human action to be initiated or operated, distinguishing from those that function automatically or naturally.

Destroying Vegetation

The act of causing damage or destruction to plant life, often due to human activities or natural disasters.