Purchase Solution

Earnings History

Not what you're looking for?

Ask Custom Question

A firm has had the following earnings history over the last 5 years:

year Earnings per share

1999 $2.50
1998 $2.00
1997 $1.75
1996 $1.25
1995 -$1.00

If the firm's dividend policy was to pay $0.25 per share each period except when earnings exceed $1.50, when an extra dividend equal to 50 percent of earnings above $1.50 would be paid, the annual dividends for 1996 and 1999 were _____

$0.25 and $1.25 respectively, $0.25 and $0.75 respectively, $0 and $0.25 respectively, or $0.25 and $0.25, respectively

Please advise answer & why.

Purchase this Solution

Solution Summary

The solution discusses the earnings history.

Purchase this Solution


Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Operations Management

This quiz tests a student's knowledge about Operations Management

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.