Find the amount of the dividend

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1. Pacsun's current stock price is 80 dollars. The board has declared that 8,000,000 dollars in cash dividends will be disbursed in 1 month. keeping everything else constant and ignoring taxes, what will the stock price be on the ex-dividend date if there are 2,000,000 shares outstanding?

2. BOA has paid its yearly dividend of 3 dollars per share. BOA now looks forward to having an earnings per share of 8 dollars next year and got a target dividend payout ratio = 0.5. If BOA utilizes speed of adjustment coefficient = 0.30, find the amount of the dividend that will be paid the following year?

Reference no: EM133111532

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