GNB Inc. sets its dividend using the target payout model. Using the da

GNB Inc. sets its dividend using the target payout model. Using the data in the table, below, calculate the dividend for Year 1.

Selected Financial Information
GNB Inc.
Dividend per share Year 0 $1.446
Target Payout Rate 35%
Earnings per share Year 0 $3.50
Earnings per share Year 1 $3.35
Adjustment factor 0.15

A) $1.296
B) $1.397
C) $1.436
D) $1.438
E) $1.446

ANSWER

D