What is its expected dividend

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Question - Extruded Elements had Net Income of $25,000,000 last year, and $26,250,000 this year (in line with its long-term earnings growth rate). There are 4,000,000 shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends. If Extruded Elements increases its payout ratio to 40% of earnings next year, but its expected growth rate remains constant, what is its expected dividend?

Reference no: EM133073520

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