Determine dividends per share and external financing

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Indus Company expects with some degree of certainty to generate the following net income and to have the following capital expenditures during the next five years (in thousands of dollars):

Net Income 3000 1000 2000 1800 1500

Capital Expenditures 1500 1000 1500 2000 2500

The company currently has $2000 shares of common stock outstanding and pays annual dividends of $1 per share. Determine dividends per share and external financing required in each year if dividend policy is treated as a passive policy decision.

Reference no: EM132578170

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