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Author Question: GNB Inc. sets its dividend using the target payout model. Using the data in the table, below, ... (Read 62 times)

Alainaaa8

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on: Apr 25, 2021

Question 1

Gecko & Co. uses the residual dividend model to set its dividends. Selected financial information for Gecko is provided in the table below.

Selected Financial Information
Gecko & Co.
Net income$32 million
Investments$36.9314 million
Dividends per Share$0.40 
Shares Outstanding15.37 million
What is Gecko's capital structure weight for equity?
◦ 0.30
◦ 0.40
◦ 0.50
◦ 0.60
◦ 0.70

Question 2

GNB Inc. sets its dividend using the target payout model. Using the data in the table, below, calculate the dividend for Year 1.

Selected Financial Information
GNB Inc.
Dividend per share Year 0$1.446
Target Payout Rate35%
Earnings per share Year 0$3.50
Earnings per share Year 1$3.35
Adjustment factor0.15

◦ $1.296
◦ $1.397
◦ $1.436
◦ $1.438
◦ $1.446
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Alainaaa8 on Apr 25, 2021

Ahernandez18

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Alainaaa8

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

ryhom

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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