How much must vw earn

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Q1) Last year the bulls business bureau (BBB) retained $400000 of the R1million net generated income. This year BBB generated net income equal to $12 million. If BBB follows the constant payout ratio dividend policy, how much should be paid in dividends this year?

Q2) Last year VW earned $15million and it paid $6 million in dividends. The company follows the constant payout ratio dividend policy. If the company would like to pay $8 million in dividends next year how much must VW earn?

Reference no: EM132540126

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