Last year's dividend for Woolridge Outfitters was $1.00. This year's earnings per share are $4.00, and Woolridge's payout ratio is 40%. Using the dividend adjustment model shown below, what would be this year's dividend with each of the following adjustment factors? a. 70% b. 0% c. 100%
dividend adjustment model
DPS - DPS = ADJ[POR(EPS ) - DPS ]
1 0 1 0
(the numbers on the second line are lower numbers that go to the right and directly under the letters - it is difficult to type the problem)© BrainMass Inc. brainmass.com October 10, 2019, 3:28 am ad1c9bdddf
This solution illustrates how to predict dividends using the Dividend Adjustment Model.