IGE MINDTAP Q search this pplication Exercise Excel Online Structured Activity: Dividends Brooks Sporting Inc. is prepared to report the following 2016 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 550000 shares of stock outstanding, and its common stock trades at $52 per share. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. The company had a 35% dividend payout ratio in 2015 . If Brooks wants to maintain this payout ratio in 2016 , what will be its per-share dividend in 2016 ? Round your answer to the nearest cent. 5 b. If the company maintains this 35% payout ratio, what will be the current dividend yield on the company's stock? Round your answer to two decimal places: c. The company reported net income of $1.35 million in 2015. Assume that the number of shares outatanding has remained constant. What was the company's per-share dividend in 20157. Round your answer to the nearest cent. 5 d. As an alternative to maintaining the same dividend payout ratio, Brooks is considering maintaining the same per-share dividend in 2016 that it paid in 2015. If it chooses this policy, what will be the company's dividend payout ratio in 2016 ? Round your answer to two decimal places. d. As an alternative to maintaining the same dividend payout ratio, Brooks is considering maintaining the same per-share dividend in 2016 that it paid in 2015. If it chooses this policy, what will be the company's dividend payout ratio in 2016? Round your answer to two decimal places. e. Assume that the company is interested in dramatically expanding its oparations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? 1. Since the company would like to avoid transactions costs involved in issuing new equity, it would be best for the firm to maintain the same per-share dividend. II. Since the company would like to avoid transactions costs involved in issuing new equity, it would be best for the firm to maintain a constant dividend payout ratio..

1. Problem 3-70 A Part II Comprehensive Problem: Reviewing the Accounting Cycle Tarkington
Freight Service provides delivery of merchandise to retail grocery stores in the Northeast. The
company aceountant has posted aif the transactions to T. accounts as weil as generating the
journal and adjusting entries. Required: The following is a list of accounts and their ending
balances. Using the data, prepare Takington's financial statements. 3. Prepare an income
statement. Note: For grouped values (e.g. revenues or expenses), enter individual amounts as
positive values, If the total for the group is subtracted or an overall negatve amou