You are an institutional investor and have collected the following information on five maritime firms to assess their dividend policies:

The average riskfree rate during the period was 7%, and the average return on the market was 12%.
a. Assess which of these firms you would pressure to pay more in dividends.
b. Which of the firms would you encourage to payless in dividends?
c. How would you modify this analysis to reflect your expectations about the future of the entire sector?

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FCFE Dividends ROE Company Alexander & Brown American president OMI Overseas shipholding Sea containers Paid ($) (%) Beta 0.80 14.5 1.30 4.0 1.25 1.5 0.90 1.05 35 12 60 15 20 12 14