Fender automative inc

Subject:AccountingPrice: Bought3

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Fender automative inc. follows a residual distribution policy and therefore wants to maintain its current debt to equity ratio. its earnings after-tax of $2.105 million and 2.5 million shares outstanding with a market price of $ 16 per share. fender automative has $ 22.5 million shares outstanding. Also has identified $2.0 million in capital projects  for the current year.

 

Required: 

Determine the dividend per share that Alto will be able to pay out this year.