Jerry Stamp, the CFO of Precision Bearings, is trying to set the dividend for the coming quarter. PB has a residual payout policy with a target capital structure weight for equity of 70%. Jerry expects net income to be $158 million and anticipates that PB will invest $100 million in fixed assets and working capital. PB has 250 million shares outstanding. 

What dividend (per share) will PB be able to pay this year?

Answer rating: 100% (QA)

To calculate the dividend per share we need to first calculate the available cash for ... View the full answer