Jensen Inc. has total equity of
$60
billion and
643
million shares outstanding. Its ROE is
15.92%.
The dividend payout ratio is
17.1%.
Calculate the company's dividends per share (round to the nearest penny).
The company's dividends per share is
$nothing.
(Round to the nearest cent.)
Total Equity = $60,000,000,000
ROE = Net Income / Total Equity = 15.92%
Net Income = $60,000,000,000 * 15.92%
Net Income = $9,552,000,000
Dividend payout ratio = 17.10%
Dividends = Net Income * Dividend payout ratio
Dividends = $9,552,000,000 * 17.10%
Dividends = $1,633,392,000
Dividends per share = Dividends / Number of shares outstanding
Dividends per share = $1,633,392,000 / 643,000,000
Dividends per share = $2.54 per share
Jensen Inc. has total equity of $60 billion and 643 million shares outstanding. Its ROE is...