Ez just paid an annual dividend of 68 per share the firm


EZ just paid an annual dividend of $.68 per share. The firm has a target payout ratio of .6 and a speed of adjustment value of .4. What is the expected value of next year's annual dividend if the firm expects its earnings per share of $2.20? I used the Litner's equation to arrive at an answer of $.76. Am I on the correct path with how to solve this type of problem?

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Basic Statistics: Ez just paid an annual dividend of 68 per share the firm
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