Respuesta :
The dividend for the following year ought to be if the company's plowback ratio is 75%. $1.94 g = 0.145*0.75 = 0.109. D1 = 1.75(1+0.109) = 1.94.
How is the dividend Plowback ratio calculated?
The earnings per share (EPS) divided by the dividend per share gives the company's dividend payout ratio (DPS). By deducting 25% from 1 and assuming that 25% of the company's net earnings were distributed as dividends, the plowback ratio can be determined.
What is a firm's Plowback ratio?
The plowback ratio is a straightforward indicator that displays the proportion of profits that the company keeps to its overall profits. For instance, a business makes $10 per share. It then announces a dividend of $6 per share. The payout ratio for dividends is 60% and 40% for plowback ratio.
The dividend formula is what?
The dividend calculation formula is as follows: Dividends paid = Annual Net Income - Net Change in Retained Earnings.
To know more about firm dividend visit:-
https://brainly.com/question/16375280
#SPJ4
