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The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital...

The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends.

Year Net Income    Profitable Capital
Expenditure
1 $18 million $ 7 million
2 20 million 12 million
3 10 million 7 million
4 20 million 8 million
5 15 million 8 million

The Hastings Corporation has 2 million shares outstanding (The following questions are separate from each other).  

c. If the firm pays a 10 percent stock dividend in years 2 through 5, and also pays a cash dividend of $2.40 per share for each of the five years, how much in total dividends will be paid?


Total cash of dividends______

ANSWER IS NOT 29

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jeff jeffy answered 4 months ago
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