Ask Question
23 February, 14:08

Emerson Inc. would like to undertake a policy of paying out 45% of its income. Its latest net income was $1,250,000, and it had 225,000 shares outstanding.

What dividend per share should it declare?

+3
Answers (1)
  1. 23 February, 17:07
    0
    Emerson Inc. should declare $2.5 per share.

    Explanation:

    Dividend Payout ratio is the ratio of distribution of net income earned during the period among the stockholders.

    As per given data

    Net Income = $1,250,000

    Payout ratio = 45%

    Dividend payment = 1,250,000 x 45% = $562,500

    Dividend per share = $562,500 / 225,000 = $2.5 per share
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Emerson Inc. would like to undertake a policy of paying out 45% of its income. Its latest net income was $1,250,000, and it had 225,000 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers