Question and Answers
Brooks Sporting Inc. is prepared to report the following 2016 income statement (shown in thousands of dollars).
| Sales | $15700 |
| Operating costs including depreciation | 12246 |
| EBIT | $3454 |
| Interest | 264 |
| EBT | $3190 |
| Taxes (40%) | 1276 |
| Net income | $1914 |
Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 310000 shares of stock outstanding, and its common stock trades at $54 per share. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
- The company had a 50% dividend payout ratio in 2015. If Brooks wants to maintain this payout ratio in 2016, what will be its per-share dividend in 2016? Round your answer to the nearest cent.$