What dividend per share will they declare for fiscal year

Assignment Help Financial Management

Reference no: EM131317415

Delta Corporation earned $2.50 per share during fiscal year 2008 and paid cash dividends of $1.00 per share. During the fiscal year that just ended on December 31, 2009, Delta earned $3.00 per share, and the firm's managers expect to earn this amount per share during fiscal years 2010 and 2011, as well.

a. What was Delta's payout ratio for fiscal year 2008?

b. If Delta's managers want to follow a constant nominal dividend policy, what dividend per share will they declare for fiscal year 2009?

c. If Delta's managers want to follow a constant payout ratio dividend policy, what dividend per share will they declare for fiscal year 2010? d. If Delta's managers want to follow a partial-adjustment strategy, with a target payout ratio equal to FY 2008's, how could they change dividend payments during 2009, 2010, and 2011?

Reference no: EM131317415

Questions Cloud

What is the npv of this investment : They expect this equipment to produce cash flows of $814,322, $663,275, $637,250, $1,817,112, $1,292,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment.

What are the pros and cons of paying out cash dividends : What if investors faced the same 15 percent tax on income and capital gains?- What are the pros and cons of paying out cash dividends?

Machine is the best investment : A company is considering buying either Machine A or Machine B. Machine Both machines cost $42,392, but Machine A is expected to last 4 years and generate cash flows of $16,367 each year, while Machine B is only expected to last 2 years, but genera..

An analysis of the changes in recorded crime : This is to be based on a single variate analysis of the data provided, and its focus is on the interpretation of the output of the various charts/tables/statistical tests you choose to utilise. Clearly you must provide a rationale for such an analysi..

What dividend per share will they declare for fiscal year : If Delta's managers want to follow a constant nominal dividend policy, what dividend per share will they declare for fiscal year 2009?

Project equivalent annual cost : The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent, what is this project's equivalent annual cost, or EAC?

Wacc components-debt and equity : Assume that Marriott uses only two WACC components – Debt and Equity (common stock). Calculate the WACC for each of the three Marriott divisions (lodging, contract services, and restaurants). Be sure to document and explain the reasons for any assump..

Analyze the arguments of the defendant in each given case : Summation of cases: Once you locate your cases, you are to summarize the cases, explain the arguments of the defendant in each case, and interpret the ruling of the Supreme Court. Also discuss if you agree or disagree with these rulings.

How to determine the level of risk management of a project : Imagine the team working on the satellite development project was a virtual team in which team members were unable to meet in person. Explain the expected impact on the project, and suggest two (2) ways the team could maintain its current goal in ..

User Account

All Pages