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    Worthington's payout ratio

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    Worthington Corp has declared an annual dividend of .90 per share. For the year just ended, earnings were 6.50 per share.

    1. What is Worthington's payout ratio?

    2. Suppose Worthington has 6.3 million shares outstanding. Borrowing for the coming year is planned 16 milliton. What are the planned outlays assuming a reisdual dividend policy. What target capital structure is implicit in these calcuations?

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    Solution Preview

    Worthington Corp has declared an annual dividend of .90 per share. For the year just ended, earnings were 6.50 per share.

    1. What is Worthington's payout ...

    Solution Summary

    Worthington's payout ratio is established in this solution.

    $2.19

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