Question: A company had the following dividend payment pattern during the last few years: In Million PAT Dividend 2011 2012 2013 2014 2015 2016 2017

A company had the following dividend payment pattern during the last few

A company had the following dividend payment pattern during the last few years: In Million PAT Dividend 2011 2012 2013 2014 2015 2016 2017 2018 15 20 25 27 30 18 24 3 3.6 4.0 22 4.4 2019 32 Compute the dividend payout ratio of the company between 2015 and 2019. Suppose they have increased the dividend to 5 in the year 2015 and kept the same for the next five years, from a dividend payout ratio point of view, has the company's payout ratio increased/decreased? What would be the possible reasons for the change in the strategy?

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To compute the dividend payout ratio for the company between 2015 and 2019 well first calculate the dividend payout for each year during this period and then determine the payout ratio The dividend pa... View full answer

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