JB Associates earned a net income of $4.5 million in 2009. The company announced dividends of $0.818
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JB Associates earned a net income of $4.5 million in 2009. The company announced dividends of $0.818 per share, which will grow constantly. Given that the weighted average number of common shares outstanding in 2009 is 2.2 million and that the company’s book value of equity in 2008 and 2009 is $22 million and $28 million, respectively. What is the annual growth rate in dividends? Can you please demonstrate how to solve the problem by hand, with no Excel, and show how the process is performed so I can understand the process?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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