Consider the following information taken from the stockholders equity section: Required: 1. Calculate the following for 2012

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Consider the following information taken from the stockholders€™ equity section:
Consider the following information taken from the stockholders€™ equity section:

Required:
1. Calculate the following for 2012 (Note: Round answers to two decimal places):
Stockholder Payout Stockholder Profitability
Dividend yield ............ Return on common equity
Dividend payout ........... EPS
Total payout
Stock repurchase payout
2. Assume 2011 ratios were:
Stockholder Payout Stockholder Profitability
Dividend yield: 0.85% ......... Return on common equity: 34.26%
Dividend payout: 9.80% ........ EPS: $3.51
Total payout: 70.00%
Stock repurchase payout: 60.20% and the current year industry averages are:
Stockholder Payout Stockholder Profitability
Dividend yield: 0.76% ........... Return on common equity: 23.81%
Dividend payout: 12.35% .......... EPS: $1.23
Total payout: 48.37%
Stock repurchase payout: 36.02%
How do you interpret the company€™s payout and profitability performance?

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Related Book For  book-img-for-question

Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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