(Dividend adjustment model) Last year's dividend for Woolridge Outfitters was $1.00. This year's earnings per share are $4.00, and Woolridge's target payout ratio is 40%. Using the dividend adjustment model, Equation (18.1), what would be this year's dividend with each of the following adjustment factors?
Dividend Adjustment Model Formula
DPS1 = DPS0 * ADJ*(PR*EPS1 - ...
The solution computes dividend with different adjustment factors.