Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

problem about Payout Ratio

Delta Corporation earned $ 2.50 per share during fiscal year 2008 and paid cash dividends of $ 1.00 per share. During the fiscal year that just ended on December 31, 2009, Delta earned $ 3.00 per share, and the firms managers expect to earn this amount per share during fiscal years 2010 and 2011, as well.

a. What was Deltas payout ratio for fiscal year 2008?

b. If Deltas managers want to follow a constant nominal dividend policy, what dividend per share will they declare for fiscal year 2009?

c. If Deltas managers want to follow a constant payout ratio dividend policy, what dividend per share will they declare for fiscal year 2010?

d. If Deltas managers want to follow a partial- adjustment strategy, with a target payout ratio equal to FY 2008 s, how could they change dividend payments during 2009, 2010, and 2011?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M924864

Have any Question? 


Related Questions in Business Economics

Discuss the impact of major accountingfinancial scandals on

Discuss the impact of major accounting/financial scandals on investors’ asset preferences. In your opinion how do the scandals affect foreign markets? Discuss two macro variables that affect changes in interest rates/or ...

Imagine that you are the owner of a day-care center and

Imagine that you are the owner of a day-care center and that parents consistently pick their children up late. Your clearly stated policy is that children are supposed to be picked up by 5:30 pm. This makes pick-up time ...

Down under boomerang inc is considering a new three-year

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.94 million. The fixed asset will be depreciated straight-line to zero over its three-yea ...

The bf goodrich co decided to close one of its plants it

The B.F. Goodrich Co. decided to close one of its plants. It offered to pay a 10% bonus to any employee who continued to work in the plant until it closed. Maude Miami was employed at the existing plant; she knew of the ...

At the beginning of 2013 norris company had a deferred tax

At the beginning of 2013, Norris Company had a deferred tax liability of $7,300, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income t ...

The chinese government managed the value of the chinese

The Chinese government managed the value of the chinese yuan relative to the US.between 1995 -2005 the yuan was pegged to the dollar at a rate of 8.28 yuan per US. China's central bank is responsible for using monetary p ...

Fuel prices could squeeze cheap flights airlines are having

Fuel Prices Could Squeeze Cheap Flights Airlines are having difficulty keeping prices low, especially as fuel prices keep rising. Airlines have raised fares to make up for the fuel costs. American Airlines increased its ...

Consider an small open economy suppose that money demand

Consider an small open economy. Suppose that money demand depends on disposable income, so that the equation for the money market becomes M/P = L(r, Y − T). Analyze the impact of a tax cut in a small open economy on the ...

A person can benefit from specialization and trade by

A person can benefit from specialization and trade by obtaining a good at a price that is A. higher than his or her opportunity cost of that good. B. different than his or her opportunity cost of that good. C. the same a ...

It is important to understand market needs to ensure that

It is important to understand market needs to ensure that the market mix—including product, price, promotion, and place (distribution)—meets market needs. This task is difficult in a domestic setting, but global marketin ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate