Defined in the lintner model


Problem:

The Sharpe Co. just paid a dividend of $2.05 per share of stock. Its target payout ratio is 40 percent. The company expects to have earnings per share of $6.20 one year from now.

Required:

Question 1: If the adjustment rate is .3 as defined in the Lintner model, what is the dividend one year from now?

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Finance Basics: Defined in the lintner model
Reference No:- TGS0876814

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