Final answer:
To calculate the expected payout ratio, one would need to know Lena Inc.'s dividend per share, which isn't provided. However,
by calculating the implied dividend at different payout ratios, we can compare them with the earnings per share of $2.60, though we cannot determine the correct payout ratio without the actual dividend figure.
Step-by-step explanation:
The expected payout ratio for Lena Inc. can be determined by the formula: (Dividend per share / Earnings per share) × 100%. Since the question does not provide the actual dividend but asks us to select from given percentages, we have to calculate the implied dividend for each payout option and see which matches the $2.60 expected earnings per share.
- 20% payout: 0.20 × $2.60 = $0.52
- 30% payout: 0.30 × $2.60 = $0.78
- 40% payout: 0.40 × $2.60 = $1.04
- 50% payout: 0.50 × $2.60 = $1.30
Without additional information on actual dividends, we cannot determine the exact payout ratio from the options provided. Knowing the exact dividend Lena Inc. plans to distribute would be necessary to answer the question correctly.
by calculating the implied dividend at different payout ratios, we can compare them with the earnings per share of $2.60, though we cannot determine the correct payout ratio without the actual dividend figure.