Question

n its 2016 annual report, Lockheed Martin reports net earnings of $5,302 and dividends paid of $2,048. Your forecast of the net income for Lockheed Martin for 2017 is $5,504. What are the projected dividends for the company for 2017

Answer 1

$2,126 million

Step-by-step explanation:

Calculation for the Projected dividends for 2017

Using this formula

Projected dividends for 2017=2107 Forescated net income ×(2016 Dividends/2016 Net Income )

Let plug in the formula

Projected dividends for 2017=$5,504 million × ($2,048 million / $5,302 million)

Projected dividends for 2017=$5,504 million×0.38626933

Projected dividends for 2017 = $2,126

Therefore the Projected dividends for 2017 will be $2,126 million