The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure
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Question:
The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends.
Year Net Income Profitable Capital Expenditure
$ million $ million
million million
million million
million million
million million
The Hastings Corporation has million shares outstanding. The following questions are separate from each other. Assume the payout ratio in each year is to be percent of the net income and the firm will pay a percent stock dividend in years through how much will dividends per share for each year beAssume the cash dividend is paid after the stock dividend.
Note: Round your answers to decimal places.
The answers were incorrect except the first one
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