Cafe de Continentale earns $3

Finance Dec 24, 2020

Cafe de Continentale earns $3.25 per share and has a dividend payout ratio of 0.50. If Cafe de Continentale has a capital budget of $500,000 and 100,000 shares outstanding. What are the annual dividends per share?

Expert Solution

dividend payout ratio=dividend payout /Earnings

Hence dividend payout =3.25*0.5

which is equal to

=$1.625 per share

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote