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, to calculate projected dividends per share for this year and the next four.

Answer rating: 100% (QA)

DPS1 DPS0 ADJPOREPS1 DPSO POR 025 ADJ 075 DPS0 1 EPS1 1 DPS1 DPS0 A... View the full answer