medium · Principles of Finance cost-of-capital-structure
A firm currently pays a dividend of $2.00 per share. Its EPS for the year is $10.00. The company follows a Lintner-style dividend policy with a target payout ratio of 40% and a partial adjustment speed of 0.5.
What is the expected dividend for the next year?
- $2.00
- $3.00
- $2.50
- $4.00
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