Calculate what amount to pay in dividends

Related BrainMass Solutions

• Preferred Dividends

  The preferred stock pays dividends in the amount of $2 per share, but because of cash flow problems, the company did no pay any dividends last year. The board of directors plans to pay dividends in the amount of $1million this year.

• Dividends per share of common stock

  This year, the board of directors has allocated $50,000 to pay dividends. If the Iguana did not pay dividends last year, what will be the company's dividends per share of common stock this year?

• Dividend constraints and effects on stockholders' equity

  Since dividends are to be paid in cash, the largest dividend amount would equal the total cash available.

• Calculate Income and Dividend Payout Ratio

  The amount of equity needed is 725,000X55% = 398,750. Also the company wants to pay $500,000 in dividends. The net income should be 398,750+500,000=898,750.

• Residual Policy vs. Cash Dividends

  The dividend is being maintained at $0.50 per share and the total amount to be paid out as dividend is $2,500,000 The solution explains how to calculate the dividend payment under a residual dividend policy.

• Reynolds Company dividend policy: Calculate amount, options, equity, residual

  If the company follows a residual policy, how much will it pay out in dividends? 2. If the company decides to maintain last year's dividend, how much will it pay out in dividends this year? 3.

• A stock is expected to pay no dividends for the first three years. Assuming the stock is fairly priced, what is the current price of the stock?

  55793 stock is expected to pay no dividends for the first three years A stock is expected to pay no dividends for the first three years, i.e., D1 = $0, D2 = $0, and D3 = $0.

• Dividends to its preferred stockholders

  So in this year 2 years of dividend would be paid Dividend amount each year is 2,000 shares X $80 par value X 5% rate = $8,000 Total dividends to be paid this year would be 8,000X2 = $16,000 The solution explains how to calculate the amount to dividends

• Stockholders and the Free Cash Flow to Equity Calculation

  Although the free cash flow to equity may calculate the amount available to stockholders, it does not necessarily equate to the amount that is paid out to stockholders because a company's board of directors still has control over what to do with it.