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-What Is the Expected Dividend Per Common Share?
A) $1

Question 112

Multiple Choice

 The Dawson Corporation projects the following for the upcoming year:  Earnings before Interest and Taxes  $35 million  Interest Expense  $5 million  Preferred Shares Dividends $4 million  Common Shares Dividend Payout Ratio 30% Average Number of Common Shares  Outstanding 2 million  Effective Corporate Income Tax Rate 40%\begin{array}{l}\text { The Dawson Corporation projects the following for the upcoming year: }\\\\\begin{array} { | l | r | } \hline \text { Earnings before Interest and Taxes } & \text { \$35 million } \\\hline \text { Interest Expense } & \text { \$5 million } \\\hline \text { Preferred Shares Dividends } & \$ 4 \text { million } \\\hline \text { Common Shares Dividend Payout Ratio } & 30 \% \\\hline \begin{array} { l } \text { Average Number of Common Shares } \\\text { Outstanding }\end{array} & 2 \text { million } \\\hline \text { Effective Corporate Income Tax Rate } & 40 \% \\\hline\end{array}\end{array}
-What is the expected dividend per common share?


A) $1.80.
B) $2.10.
C) $2.70.
D) $3.90.

Correct Answer:

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