Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 14, Problem 1TCL
Summary Introduction

To determine: The dividend per share, dividend yield, and dividend payout over the past 5 years of A Company.

Dividends:

A business distributes its profit to stockholders if the net income of the business shows an increase in net assets. The distribution of profit from cash or any other assets to stockholders is called a dividend.

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Select a publicly traded company that pays dividend. Go to www.yahoofinance.com and download the dividend data for the selected company and one of its competitors’ stock for the last 10 years (2012-2022). Use Excel to calculate annual dividends and the annual growth rate in dividends for the two companies. Questions: 1. Based on historical growth rates in dividend, will the forecasted growth in dividend be constant or non-constant? Explain.
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