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MC Question 3

The following information relates to a company:
Year 0 1 2 3
Earnings per share (cents) 30·0 31·8 33·9 35·7
Dividends per share (cents) 13·0 13·2 13·3 15·0
Share price at start of year ($) 1·95 1·98 2·01 2·25

Which of the following statements is correct?

A. The dividend payout ratio is greater than 40% in every year in the period
B. Mean growth in dividends per share over the period is 4%
C. Total shareholder return for the third year is 26%
D. Mean growth in earnings per share over the period is 6% per year