Fauver Enterprises declared a 5-for-1 stock split last year, and this year its dividend is $0.80 per share. This total dividend payout represents a 14% increase over last year's pre-split total dividend payout. What was last year's dividend per share? Round your answer to the nearest cent.
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Ans. | Last year's dividend per share = $3.51 | ||||||||||
Dividend per share after split = 0.80 | |||||||||||
Equivalent pre-split dividend = 5 * 0.80 | |||||||||||
4 | |||||||||||
Equipent pre-split dividend = last year's dividend * (1 + increased total dividend payout) | |||||||||||
4 = last year's dividend * (1 + 14%) | |||||||||||
Last year's dividend = 4 / 1.14 | |||||||||||
3.51 | |||||||||||
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