ASSIGNMENT
Question and Answers
Brooks Sporting Inc. is prepared to report the following 2016 income statement (shown in thousands of dollars).
| Sales | $15700 |
| Operating costs including depreciation | 12246 |
| EBIT | $3454 |
| Interest | 264 |
| EBT | $3190 |
| Taxes (40%) | 1276 |
| Net income | $1914 |
Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 310000 shares of stock outstanding, and its common stock trades at $54 per share. The data has been collected in the Microsoft Excel Online file below.
Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
The company had a 50% dividend payout ratio in 2015. If Brooks wants to maintain this payout ratio in 2016, what will be its per-share dividend in 2016? Round your answer to the nearest cent.$
If Brooks wants to maintain this payout ratio in 2016, what will be its per-share dividend in 2016? Round your answer to the nearest cent.$
