Problem:
Specialty Chemicals Company (SCC) pays out 50% of its net income as cash dividends to its shareholders once each quarter. The company plans to do so again this year, during which SCC earned $100 million in net profits after tax.
Required:
Question: If the company has 40 million shares outstanding and pays dividends quarterly, what is the company's dollar dividend payment per share each quarter?
Note: Please provide reasons to support your answer.