In 2011, Arborio Farms earned $3.60 per share and paid a cash dividend of $1.20 per share,

Question:

In 2011, Arborio Farms earned $3.60 per share and paid a cash dividend of $1.20 per share, exactly in line with its target payout ratio of 33%. Arborio's earnings per share in the next 6 years were $3.30 in 2012, $3.60 in 2013, $4.00 in 2014, $4.68 in 2015, $4.00 in 2016, and $4.05 in 2017. Make a prediction of Arborio's dividends per share in these years. You can make additional assumptions if that is helpful, but make sure your prediction is reasonable.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...