Choc-Lattes Corp

Multiple Choice

Choc-lattes Corp. earned $5.00 per share in 2006, and paid a dividend of $2.00 per share. If it earns $5.50 in 2007 and follows a constant payout ratio policy, its dividend will be

A) $3.30
B) $3.00
C) $2.20
D) $2.00