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Year Dividend Price 1994 $0.33 $44.12 1995 $1.33 $60.50 1996 $0.75 $64.25 1997 $

ID: 2686490 • Letter: Y

Question

Year Dividend Price 1994 $0.33 $44.12 1995 $1.33 $60.50 1996 $0.75 $64.25 1997 $1.65 $41.12 1998 $2.23 $65.10 1999 $2.60 $59.00 2000 $2.18 $74.50 2001 $1.30 $66.25 2002 $1.10 $81.12 2003 $1.70 $75.50 Year Price (t-1) Price (t+1) Change 1994 $42.50 $43.00 $1.50 1995 $60.50 $60.25 $0.25 1996 $63.12 $63.75 $0.63 1997 $41.50 $40.87 $0.63 1998 $66.12 $64.90 $1.22 1999 $58.75 $59.12 $0.37 2000 $74.50 $74.37 $0.13 2001 $63.22 $63.24 $0.02 2002 $79.45 $81.24 $1.79 2003 $76.02 $75.98 $0.04 Change Dividend $1.50 $0.33 $0.25 $1.33 $0.63 $0.75 $0.63 $1.65 $1.22 $2.23 $0.37 $2.60 $0.13 $2.18 $0.02 $1.30 $1.79 $1.10 $0.04 $1.70 Price Y to Y change $44.12 $1.00 $60.50 $0.58 $64.25 $1.58 $41.12 $0.58 $65.10 $0.37 $59.00 $0.42 $74.50 $0.88 $66.25 $0.20 $81.12 $0.60 $75.50 Looking at the above information what type of dividend policy would you pursue and why?

Explanation / Answer

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