Fauver Enterprises declared a 3-for-1 stock split last year, and this yearits dividend is $1.50 per share. This total dividend payout represents a6% increase over last year’s pre-split total dividend payout. What was lastyear’s dividend per share?

Fauver Enterprises declared a 3-for-1 stock split last year, and this yearits dividend is $1.50 per share. This total dividend payout represents a6% increase over last year’s pre-split total dividend payout. What was lastyear’s dividend per share?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 8P: Stock Split Fauver Enterprises declared a 3-for-1 stock split last year, and this year its dividend...

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Question

Fauver Enterprises declared a 3-for-1 stock split last year, and this year
its dividend is $1.50 per share. This total dividend payout represents a
6% increase over last year’s pre-split total dividend payout. What was last
year’s dividend per share?

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