09 Jan

Low-regular-and-extra dividend policy Bennett Farm

by jagguarpaw On: Finance - 0 Comment

Question: Low-regular-and-extra dividend policy Bennett Farm …

Low-regular-and-extra dividend policy

Bennett Farm Equipment Sales, Inc., is in a highly cyclic business. Although the firm as a target payout ratio of 25%, its board realizes that strict adherence to that ration would result in a fluctuating dividend and create uncertainty for the firm’s stockholders. Therefore, the firm has declared a regular dividend of $.50 per share per year with extra cash dividends to be paid when earnings justify them. Earnings per share for the last several years are shown in the following table:

Year EPS

2015 $3.00

2014 $2.40

2013 $2.20

2012 $2.80

2011 $2.15

2010 $1.97

1. a) Calculate the payout ratio for each year on the basis of the regular $.50 dividend and cited eps.

1. b) Calculate the difference between the regular $.50 dividend and a 25% payout for each year.

1. c) Bennett has established a policy of paying an extra dividend of $.25 only when the difference between the regular dividend and a 25% payout amount to $1.00 or more. Show the regular and extra dividends in those years when an extra dividend would be paid. What would be done with the “extra” earnings that are not paid out?

2. d) The firm expects that future earnings per share will continue to cycle but will remain above $2.20 per share in most years. What factors should be considered in making a revision to the amount paid as a regular dividend? If the firm revises the regular dividend, what new amount should it pay?

Tags: Low-regular-and-extra, Low-regular-and-extra dividend, Low-regular-and-extra dividend policy, Low-regular-and-extra dividend policy Bennett, Low-regular-and-extra dividend policy Bennett Farm Share

Trackbacks and pingbacks

1. HP Server Teknik Servis
   ... [Trackback] [...] Information on that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
2. kurumsal it danışmanlığı
   ... [Trackback] [...] Find More here on that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
3. microsoft exchange hosting fiyat
   ... [Trackback] [...] There you will find 14376 more Info to that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
4. walmart pharmacy refills online
   walmart pharmacy refills online Low-regular-and-extra dividend policy Bennett Farm - Wise American
5. generic cialis without a doctor prescription
   generic cialis without a doctor prescription Low-regular-and-extra dividend policy Bennett Farm - Wise American
6. canadian pharmacy pain meds
   canadian pharmacy pain meds Low-regular-and-extra dividend policy Bennett Farm - Wise American
7. how to buy cialis online from canada
   how to buy cialis online from canada Low-regular-and-extra dividend policy Bennett Farm - Wise American
8. legitimate online pharmacy list
   legitimate online pharmacy list Low-regular-and-extra dividend policy Bennett Farm - Wise American
9. daily cialis reviews
   daily cialis reviews Low-regular-and-extra dividend policy Bennett Farm - Wise American
10. cheap cialis super active
    cheap cialis super active Low-regular-and-extra dividend policy Bennett Farm - Wise American
11. is tadalafil the same as cialis
    is tadalafil the same as cialis Low-regular-and-extra dividend policy Bennett Farm - Wise American
12. will a walk-in clinic prescribe viagra
    will a walk-in clinic prescribe viagra Low-regular-and-extra dividend policy Bennett Farm - Wise American
13. what is the best generic viagra review
    what is the best generic viagra review Low-regular-and-extra dividend policy Bennett Farm - Wise American
14. drogist online viagra
    drogist online viagra Low-regular-and-extra dividend policy Bennett Farm - Wise American
15. cialis legal purchase
    cialis legal purchase Low-regular-and-extra dividend policy Bennett Farm - Wise American
16. where can i buy cialis
    where can i buy cialis Low-regular-and-extra dividend policy Bennett Farm - Wise American
17. cialis viagra levitra samples
    cialis viagra levitra samples Low-regular-and-extra dividend policy Bennett Farm - Wise American
18. movie21
    ... [Trackback] [...] Read More on that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
19. mspy price
    ... [Trackback] [...] Info on that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
20. cialis from bc
    cialis from bc Low-regular-and-extra dividend policy Bennett Farm - Wise American
21. canada pharmacies online
    canada pharmacies online Low-regular-and-extra dividend policy Bennett Farm - Wise American
22. knockoff bvlgari watches knockoffs
    ... [Trackback] [...] Read More on to that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
23. dissertation writing service uk
    dissertation writing service uk Low-regular-and-extra dividend policy Bennett Farm - Wise American
24. college essay writers
    college essay writers Low-regular-and-extra dividend policy Bennett Farm - Wise American
25. thesis editing services
    thesis editing services Low-regular-and-extra dividend policy Bennett Farm - Wise American
26. professional dissertation writing service
    professional dissertation writing service Low-regular-and-extra dividend policy Bennett Farm - Wise American
27. college essay service
    college essay service Low-regular-and-extra dividend policy Bennett Farm - Wise American
28. thesis editing service
    thesis editing service Low-regular-and-extra dividend policy Bennett Farm - Wise American
29. essayhelpof.com
    essayhelpof.com Low-regular-and-extra dividend policy Bennett Farm - Wise American
30. CENTERFIRE REVOLVERS
    ... [Trackback] [...] Find More on that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
31. arvest bank
    ... [Trackback] [...] Read More on on that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
32. site to buy cvv online
    ... [Trackback] [...] Read More on on that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
33. cialis generika kaufen wo
    cialis generika kaufen wo Low-regular-and-extra dividend policy Bennett Farm - Wise American
34. see this website
    ... [Trackback] [...] There you can find 21641 more Info to that Topic: wiseamerican.us/low-regular-extra-dividend-policy-bennett-farm/ [...]
35. buy viagra online with overnight shipping
    buy viagra online with overnight shipping Low-regular-and-extra dividend policy Bennett Farm - Wise American
36. generic cialis without prescription
    generic cialis without prescription Low-regular-and-extra dividend policy Bennett Farm - Wise American
37. cialis cheapest price
    cialis cheapest price Low-regular-and-extra dividend policy Bennett Farm - Wise American
38. buy cialis online in australia
    buy cialis online in australia Low-regular-and-extra dividend policy Bennett Farm - Wise American
39. cheap cialis
    cheap cialis Low-regular-and-extra dividend policy Bennett Farm - Wise American
40. cialis with dapoxetine
    cialis with dapoxetine Low-regular-and-extra dividend policy Bennett Farm - Wise American
41. viagra
    viagra Low-regular-and-extra dividend policy Bennett Farm - Wise American
42. walgreens pharmacy online
    walgreens pharmacy online Low-regular-and-extra dividend policy Bennett Farm - Wise American
43. canada online pharmacy
    canada online pharmacy Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
44. viagra walgreens
    viagra walgreens Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
45. cialis generic
    cialis generic Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
46. write my paper reviews
    write my paper reviews Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
47. psychology thesis
    psychology thesis Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
48. writing your thesis
    writing your thesis Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
49. best custom essay service
    best custom essay service Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
50. reflective essay help
    reflective essay help Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
51. dissertation abstracts
    dissertation abstracts Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
52. order custom essay online
    order custom essay online Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
53. https://researchpaperssfk.com
    https://researchpaperssfk.com Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd
54. essays about community service
    essays about community service Low-regular-and-extra dividend policy Bennett Farm - Core Recruiters Ltd