what will be its per-share dividend in 2016? Round your answer to the nearest cent.$

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

  1. 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.$