Kizspy | Question: 30
(Choose 1 answer)
Earmark, Co. has a policy of returning a minimum of 40 percent of earnings to shareholders every year
through dividend issues and open-market stock repurchases. In each quarter this year, the company earned
$0.35 per share. In each of the first three quarters the company paid a regular cash dividend of $0.10 per
share. What combination of dividends could the company's board approve to meet their target payout
percentage?
A. A regular cash dividend of $0.10 per share
B. A regular cash dividend of $0.10 per share and an extra dividend of $0.56 per share
C. A regular cash dividend of $0.10 per share and an extra dividend of $0.46 per share
D. A regular cash dividend of $0.10 per share and an extra dividend of $0.16 per share
