What was the firm dividend payout ratio

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A firm earned $2.5/share and paid a dividend of $1.00/share in 2015. The firm earned $3.00/share in 2016, which managers expect the firm to repeat in 2017 and 2018.

(A) What was the firm’s dividend payout ratio in 2015?

(B) If managers wish to hold this dividend payout ratio constant, dividend per share will they declare in 2017 and 2018?

Reference no: EM131874204

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