Discuss whether a constant payout ratio of 60% would benefit

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The board of Kopi Industries is considering a new dividend policy that would set dividends at 60% of earnings. The recent past has witnessed earnings per share (EPS) and dividends paid per share as follows:
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Based on Kopi's historical dividend payout ratio, discuss whether a constant payout ratio of 60% would benefit shareholders.  

Reference no: EM131109015

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