Explore BrainMass

Dividends Analysis, Cash Flows, and Income Statements

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

I just finished working with my team and we decided to invest in dividends in Q8. (We haven't done it before as per the prof.'s advice).
Using the 34% as payout takes $15,665,265 of our cash. Although we projected good figures for our net income and cash balance in Q8, I think it's too much money. Attached please find the financial statements for Q8 and help me to decide which rate to use.
Thank you.

NI: $46,149,650
Total shares: 67,815
Payout: 34%
Dividends: $15,665,265
Dividend per share: 231.

© BrainMass Inc. brainmass.com March 22, 2019, 1:27 am ad1c9bdddf


Solution Preview

The dividend activity will flow onto the Statement of Cash Flows, so we'll want to keep a cash balance that satisfies investors and shows that the company will remain viable. A dividend ...

Solution Summary

This solution shows how to calculate dividends based on a given scenario.