Last year, Apple Inc. had net income of $129 million and paid out $38.7 million in the form of dividends. This year, the company has a net income of $154.8. It has identified positive NPV projects that require $139.32 million in funding. The company's target debt ratio (debt/asset) is 0.5. The company has 6 million shares outstanding. 1. If the company wants to maintain the same payout ratio as last year, what should be the dividend per share (in $)?

Last year, Apple Inc. had net income of $129 million and paid out $38.7 million in the form of dividends. This year, the company has a net income of $154.8. It has identified positive NPV projects that require $139.32 million in funding. The company's target debt ratio (debt/asset) is 0.5. The company has 6 million shares outstanding. 1. If the company wants to maintain the same payout ratio as last year, what should be the dividend per share (in $)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 13P

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