October 2003 QUESTION 5 (a) Constant Payout Ratio of 50 per cent Year (Profit x Payout Ratio)+Shares Dividend Per Share (1400000×0.5)÷1000000 0.70 12345 (2000000×0.5)÷1000000 S00 (1860000×0.5)÷1000000 s0.93 (900000×0.5)÷1000000 045 (2800000×0.5)÷1000000 $40 (b) Fully Franked Dividends of 90 per cent Year(Profit x Payout Ratio )+Shares Dividend Per Share (1400000×0.9)÷1000000 (2000000×0.9)÷1000000 80 2345 (1860000×0.9)÷1000000 167 (900000×0.9)÷1000000 s0.81 (280009)÷100000 $2.52October 2003 QUESTION 5 (a) Constant Payout Ratio of 50 per cent Year (Profit ×Payout Ratio)  Shares Dividend Per Share 1 (1 400 000 ×0.5)  1 000 000 $0.70 2 (2 000 000 ×0.5)  1 000 000 $1.00 3 (1 860 000 ×0.5)  1 000 000 $0.93 4 (900 000 ×0.5)  1 000 000 $0.45 5 (2 800 000 ×0.5)  1 000 000 $1.40 (b) Fully Franked Dividends of 90 per cent Year (Profit ×Payout Ratio)  Shares Dividend Per Share 1 (1 400 000 ×0.9)  1 000 000 $1.26 2 (2 000 000 ×0.9)  1 000 000 $1.80 3 (1 860 000 ×0.9)  1 000 000 $1.67 4 (900 000 ×0.9)  1 000 000 $0.81 5 (2 800 000 ×0.9)  1 000 000 $2.52