Firm pro-forma income statement

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PQR Inc. has a debt-equity ratio of 1.6 and 1 million shares outstanding. The firm's pro-forma Income Statement for the next year indicates that its Net Income will be $560,000. If the company proposes to invest 60% of its earnings in projects, what is the dividend per share? 

STU Mobility Inc. will pay $3 per share in cash dividends one year from now, and a liquidating dividend of $75 per share two years from now. The required return on similar common stocks is 12%. If you own 1,000 shares of the 100,000 total shares outstanding in STU, but you want to have constant dividend payout in the next two years, how much homemade dividends can you get in each year?

Reference no: EM131835848

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