1.) Southern Cities Trucking Company has the following five-year record of earnings per share displayed below. Which of the following procedures would produce higher dividends to stockholders over this five-year period?
|
Year
|
EPS
|
|
2012
|
$1.351.35
|
|
2013
|
2.072.07
|
|
2014
|
0.97
|
|
2015
|
2.95
|
|
2016
|
0.71
|
a. Paying out dividends at a fixed ratio of 44% of EPS.
b. Paying out dividends at a fixed rate of $0.97 per share.
2.) HighTeck has a ROE of 18.01%. Its earnings per share are $1.72, and its dividends per share are $0.14.
Estimate HighTeck's growth rate.