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balandron [24]
3 years ago
5

Emerson Inc.'s would like to undertake a policy of paying out 45% of its income. Its latest net income was $1,250,000, and it ha

d 225,000 shares outstanding. What dividend per share should it declare? $2.14 $2.26 $2.38 $2.50 $2.63
Business
1 answer:
AfilCa [17]3 years ago
7 0

Answer:

$2.50

Explanation:

Given that,

Dividend Paying out under a policy = 45% of its income

Net income = $1,250,000

Number of shares outstanding = 225,000

Total dividends:

= 45% of its income

= $ 1,250,000 × 45%

= $562,500

Dividend per share:

= Total dividends ÷ Number of shares outstanding

= $562,500 ÷ 225,000

= $2.50

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