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Author Question: Trevor Co's future earnings for the next four years are predicted below. Assuming there are ... (Read 100 times)

dalyningkenk

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Trevor Co's future earnings for the next four years are predicted below.
 
  Assuming there are 500,000 shares
  outstanding, what will the yearly dividend per share be if the dividend policy is
  Trevor & Co
  1 900,000
  2 1,200,000
  3 850,000
  4 1,350,000
  a. a constant payout ratio of 40
  b. stable dollar dividend targeted at 40 of the average earnings over the four-year period
  c. small, regular dividend of 0.75 plus a year-end extra of 40 of profits exceeding 1,000,000

Question 2

Exchange rate changes tend to reflect international differences in inflation rates. What is the name
  of this theory?
 
  A) interest rate parity theory B) the purchasing power parity theory
  C) the IMF effect D) the law of one price


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Kedrick2014

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