Question

The following is a regression of dividend payout ratios on the risk and ln(market capitalization: in millions) of chemical firms:
Dividend Payout Ratio = 0.14 + 0.05 [ln(Market Capitalization in Millions)] − 0.1(Beta)
Harman Chemicals has a market capitalization of $1.5 billion and a beta of 1.2. It pays out 22% of its earnings as dividends. How does this dividend payout compare to the industry?


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  • CreatedApril 15, 2015
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