What was payout ratio for fiscal year

Assignment Help Financial Management

Reference no: EM131021913

Delta Corporation earned $2.50 per share during fiscal year 2011 and paid cash dividends of $1.00 per share. During the fiscal year that just ended on December 31, 2012, Delta earned $3.00 per share and the firm's managers expect to earn this amount per share during fiscal year 2013 and 2014, as well.

a. What was Delta’s payout ratio for fiscal year 2011?

b. If Delta's managers want to follow a constant dollar payout dividend policy, what dividend per share will they declare for fiscal year 2012?

c. If Delta's managers want to follow a constant payout ratio dividend policy, what dividend per share will they declare for fiscal year 2012?

d. If Delta's managers want to follow a partial-adjustment strategy, with a target payout ratio equal to fiscal year 2011's, how could they change dividend payments during 2012, 2013, and 2014?

Reference no: EM131021913

Questions Cloud

Delivery truck costs are recorded in the trucks account : Jan.1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account.

Invest in one of two different automated clicker cutters : Fantastic Footwear can invest in one of two different automated clicker cutters, A and B. The first cutter, A, has a $ 100 000 first cost. Another similar cutter with many extra features, B, has a $ 400 000 first cost. Cutter A will save $ 50 000 per..

Dollar-equivalent investment : Suppose the six-month interest rates in Japan and the United States are 7% per year, compounded semi-annually, and 9% per year, compounded semi-annually, respectively. The spot rate is ¥142 : $1 (i.e., ¥/$ 142), and the 6 month forward rate is ¥139 :..

Which capital investment technique does the discussion : Which capital investment technique does the discussion in the textbook favor? Why? Do you agree with this assessment? Assume your firm has multiple investments to consider each with differing risk levels. How can differing risk levels be incorporated..

What was payout ratio for fiscal year : Delta Corporation earned $2.50 per share during fiscal year 2011 and paid cash dividends of $1.00 per share. During the fiscal year that just ended on December 31, 2012, Delta earned $3.00 per share and the firm's managers expect to earn this amount ..

Life insurance decision : Shortly after graduation, John (age 24) is considering buying a $250,000 life Insurance policy because he is planning to get married in the near future and belives that this amount is a good starting point for his needed life insurance program to pro..

Fixed-rate loan-determine the maximum amount : Given the following information on a fixed-rate loan, determine the maximum amount that the lender will be willing to provide to the borrower. Loan Term: 30 years, Monthly Payment: $800, Interest Rate: 6%.

Calculate balloon payment for partially amortized mortgage : Given the following information, calculate the balloon payment for a partially amortized mortgage. Loan amount: $84,000, Term to maturity: 7 years, Amortization Term: 30 years, Interest rate: 4.5%, Monthly Payment: $425.62

Operating leverage for the level of production and sales : The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $80.98. The variable cost per unit is $18.64, Poseidon Swim has average fixed costs per year of $9,301. Determine the degree of operating levera..

User Account

All Pages