Calculate projected dividends


ABC has made a bundle selling software and has begun paying cash dividends. The firm's CFO would like the firm to distribute 50% of its annual earnings (POR = .50) and adjust the dividend rate to changes in EPS at the rate of ADJ = .30. ABC paid $15.00 per share in dividends last year (D0). It will earn at least $32.50 per share this year and each year in the foreseeable future. Calculate projected dividends (D1) for the current year PLUS the next four (D2-D5).

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Finance Basics: Calculate projected dividends
Reference No:- TGS047043

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