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:

Discount Period

The time frame between the beginning of a loan or credit term and the date the full payment is due, during which a discount may be offered for early payment.

Aging Schedule

A report categorizing a company's accounts receivable according to the length of time an invoice has been outstanding, used to determine credit and collection policies.

Uncollectible Accounts Receivable

Money owed to a company that it does not expect to collect due to the debtor's inability to pay.

Bad Debt Expense

This represents the amount of receivables a company believes it can no longer collect, reflecting potential losses for accounts receivable or loans that are not expected to be fully paid.