Question: Method Required Parameter UoM Years 2016 2017 2018 Constant Payout Ratio Method Net Income Amount 2,843,186 3,296,091 3,059,704 Dividend Paid Amount 1,192,827 1,560,184 1,653,651 Payout
| Method | Required Parameter | UoM | Years | ||
| 2016 | 2017 | 2018 | |||
| Constant Payout Ratio Method | Net Income | Amount | 2,843,186 | 3,296,091 | 3,059,704 |
| Dividend Paid | Amount | 1,192,827 | 1,560,184 | 1,653,651 | |
| Payout Ratio | % | ???? | ???? | ???? | |
| Dividend Constant Growth Method | Dividend Paid | Amount | 1,192,827 | 1,560,184 | 1,653,651 |
| Growth | % | ???? | ???? | ???? | |
| Residual Distribution Method | Net Income | Amount | 2,843,186 | 3,296,091 | 3,059,704 |
| Retained Earning | Amount | 1,650,359 | 1,735,907 | 1,406,053 | |
| Dividend Paid | Amount | 1,192,827 | 1,560,184 | 1,653,651 | |
| Payout Ratio | % | ???? | ???? | ???? | |
Find out constant payout ratio in %, Constant Growth rate in %, Residual Distribution pay out ratio in %.
| Based on your working, please specify with proper justification that which method the company is following to pay dividends? | |||||
| Constant Payout Ratio Method | Dividend Constant Growth Method | Residual Distribution Method | Justification | ||
| ________________________Mark with "YES" _______________________ | |||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
