mework

i

$$

Help

Save & Exit

Submit

A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She anticipates no payout of earnings in the form of cash dividends during the development stage $($I$).$ During the growth stage $($II$),$ she anticipates $12$ percent of earnings will be distributed as dividends. As the firm progresses to the expansion stage $($III$),$ the payout ratio will go up to $35$ percent and will eventually reach $58$ percent during the maturity stage $($IV$).$mework

i

$$

Help

Save & Exit

Submit

A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She anticipates no payout of earnings in the form of cash dividends during the development stage $($I$).$ During the growth stage $($II$),$ she anticipates $12$ percent of earnings will be distributed as dividends. As the firm progresses to the expansion stage $($III$),$ the payout ratio will go up to $35$ percent and will eventually reach $58$ percent during the maturity stage $($IV$).$