Response to the following problem:
The Foster Corporation has paid dividends on common stock over the ten years as follows:
| Year |
Dividends |
Earnings |
|
1994
|
53,000
|
$5,000
|
|
1995
|
3,100
|
5,100
|
|
1996
|
3,200
|
4,500
|
|
1997
|
3,300
|
5,400
|
|
1998
|
3,500
|
5,500
|
|
1999
|
3,725
|
5,300
|
|
2000
|
3,975
|
5,200
|
|
2001
|
4,200
|
5,600
|
|
2002
|
4,500
|
5,800
|
During this ten-year period, there were 1,000 common shares outstanding.
a. What are the dividends per share for each year?
b. What is the dividend payout for each year?
c. How would you describe the dividend policy of Foster Corporation?