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

question 51

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
-If Extruded Elements increases its payout ratio to 40% of earnings next year,but its expected growth rate remains constant,what is its expected dividend?

• A) $4.13 per share
• B) $2.63 per share
• C) $3.94 per share
• D) $2.76 per share

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Definitions:

Directive Leadership

A leadership style where the leader tells team members what to do, provides specific guidance, and expects compliance.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Follower Characteristics

The traits, behaviors, and attributes of individuals who choose to follow or support a leader, which can significantly influence the leadership process and outcomes.

Expectancy Theory

Expectancy Theory is a motivational theory that suggests individuals are more likely to perform actions if they expect their efforts will lead to desired outcomes.