Extruded Elements Extruded Elements Had Net Income of $25,000,000 Last Year, and Year

question 78

Multiple Choice

Extruded Elements
Extruded Elements had Net Income of $25,000,000 last year, and $26,250,000 this year (in line with its long-term earnings growth rate) . There are 4,000,000 shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends
-What is Extruded Elements' expected dividend next year?

• A) $2.07 per share
• B) $1.97 per share
• C) $4.59 per share
• D) $4.82 per share

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Definitions:

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product or service are produced.

Capital Goods

These are physical assets used in the production process to manufacture goods and services, including buildings, machinery, and equipment.

Consumer Goods

Products and services that are consumed or used by individuals, as opposed to those purchased by businesses or industries.

Technological Improvements

Enhancements and innovations in technology that increase productivity, efficiency, or value in processes or products.