Consider the following information taken from the stockholders equity section: Required: 1. Calculate the following for 2012
Question:
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?
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen