1.This year, Ferris Co. is expected to earn a net profit of $8,500,000. Based upon this expectation, the Board of Directors has instructed management to increase Retained Earnings by $4,500,000 (without issuing or retiring any stock). The company currently has 2,000,000 shares outstanding with a current market value of $20 per share. The book value per share of stock is $12. What is the maximum dividend (per share) that can be paid to shareholders, yet still satisfy the Board's directive to increase Retained Earnings for the year?

Group of answer choices

A.$1.50/Share

B.$7.00/Share

C.$4.50/Share

D.$3.50/Share

E.$2.00/Share

2. Digby Co. stock has a market value (i.e. close price) of $30 per share and a book value of $15 per share. The company paid an annual cash dividend of $1.50 per share. What would be the investor's "dividend yield" here? Note: A similar question was presented back in HW#5.

Group of answer choices

A..08375 (8.375%)

B. .15 (15%)

C..10 (10%)

D..05 (5.0%)

E. .1125 (11.25%)