Finance quesiton help - 22276

Solution Posted by
Helping_guy

Helping_guy

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Solution Detail
Price: $5.00
  • From: Finance,
  • Posted on: Sat 10 Aug, 2013
  • Request id: None
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Request Description

(Dividend adjustment model) Regional Software has made a bundle selling spreadsheet software and has begun paying cash dividends. The firm’s chief financial officer would like the firm to distribute 25% of its annual earnings (POR = 0.25) and adjust the dividend rate to changes in earnings per share at the rate ADJ = 0.75. Regional paid $1.00 per share in dividends last year. It will earn at least $8.00 per share this year and each year in the foreseeable future. Use the dividend adjustment model,Equation (18.1), to calculate projected dividends per share for this year and the next four.

Solution Description
  1. (Dividend adjustment model) Regional Software has made a bundle selling spreadsheet software and has begun paying cash dividends. The firm's chief financial officer would like the firm to distribute 25% of its annua