Dividend Payout Ratio and Stock Split

1.
a. 37,25,000
b. 58.8
2.
16,401 shares
3.
a. 511,000 votes
b. 13,230 Votes
c. 0.259 or 2.59%
4.
a. Mr. Clark can elect 4 directors.
b. Ms. Ramsey and her friends canelect 7 directors.
c. Mr. Clark can elect 8 directors.
C-2 : YES
d. Mr. Clark can elect 4 directors.
5.
22.90%
6.
a. Value of right = $3 per right
b. Value of portfolio before the offerings = $268
c-1. Ex-right per share = $32 per share
c-2. Value of portfolio = $128
d. Value of Portfolio = $160
7.

a) 21.20
b) 21.42
8.
A. 28500000
B. 48.66117
C. 585683
9
41.02
10.
a. increase in reatined earnings = 369,600,000
b. dividend yield = 1.13%
11.
a. High payout Ratio
b. Low payout ratio
12.
a. The legal limit is equal to current year retained earnings = $108,000,000
b. The practical limit is the total cash balance of the company = 22,750,000
c. Dividend payout ratio = dividends paid divided by net income = 0.88 or 88%
13.

a.
Stage Dividend Payout ($)
I 0
II 0.31 (1.95*16%)
III 0.82 (2.50*33%)
IV 1.87 (3.40*55%)
B. After tax income = $ 484.80
C. Stage I and stage IV
14.