Havelock Ltd. is a small public company. You are provided with the following information for the years ended December 31, 2016 and 2017:

Required:
a. What are the dividend payout ratio and dividend yield  in each year? Explain what each amount means.
b. Why did the dividend payout ratio and dividend yield  change from 2016 to 2017?
c. Havelock's net income and EPS increased in 2017.Why didn't the dividend paid in-crease as well?
d. Are high dividend payout ratio and dividend yield  always attractive to investors?

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2016 2017 Net income Earnings per share Common dividends per share Market value per share on December 31 Common shares outstanding during the year Note: There was no change in the number of common shares outstanding from January 1, 2018 to December 31, 2017 1,800,000 $0.18 $0.09 $2.25 10,000,000 S 2,100,000 S0.21 S0.09 S2.75 10,000,000