If absolute has 40000 shares outstanding how much is the


Last year, Absolute Zero Freezers paid a dividend equal to $0.75 per share. Absolute follows a low regular dividend plus extras policy to determine its annual dividend. The policy requires the minimum dividend to be increased by 30% of the amount of earnings that exceeds $40,000. Last year’s earnings were $90,000. If Absolute has 40,000 shares outstanding, how much is the minimum (low regular) dividend that the firm pays out each year?

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Financial Management: If absolute has 40000 shares outstanding how much is the
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