a)
To determine: The annual dividend per share when the payout is 50% of earnings.
Introduction:
Dividend is a sum of money paid to the shareholders of the company. It is distributed among the investors from the portion of company’s earnings. It is paid by the company to the shareholders either in the form of cash or stock.
b)
To determine: The annual dividend per share when the payout is $0.50 per share and raise to $0.60 per share.
c)
To determine: The annual dividends when the payout is $0.50 per share.
d)
To determine: The annual dividends after the combination of dividend policies.
e)
To discuss: The comparison and contrast on the dividend policies.
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