Cash Cow International paid a regular quarterly dividend of $0.095 a share. Conn

Question

Cash Cow International paid a regular quarterly dividend of $0.095 a share.

Connect each of the following dates to the correct term:

On which date the stock price likely to fall by about the amount of the dividend.

The stock price in early January was $29. What was the prospective dividend yield? (Round your answer to 2 decimal places.)

The annual earnings per share were forecast at around $2.05. What was the percentage payout ratio?(Round your answer to 2 decimal places.)

Cash Cow International paid a regular quarterly dividend of $0.095 a share.

Explanation / Answer

c.

Annual dividend = $0.095 x 4 = $0.38

Price per share = $29

Therefore,

Dividend yeild = Annual dividend / Price per share = $0.38 / $29 = 0.0131 or 1.31%

d.

Payout ratio = Annual dividends / Earnings per shrare = $0.38 / $2.05 = 0.1854 or 18.54%

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