Consider the following information taken from the stockholders' equity section: Additional Information (all numbers in thousands other
Question:
Consider the following information taken from the stockholders' equity section:
Additional Information (all numbers in thousands other than per share information):
Weighted average common shares outstanding ....... 264,453
Price per share ................... $ 70.47
Net income ....................1,123,153
Preferred dividends ................ 80,000
Common dividends ................ 212,914
Common dividends per share ............. 0.81
Stock repurchases .................1,061,968
Required:
1. Calculate the following:
Stockholder Payout Stockholder Profitability
Dividend yield Return on common equity
Dividend payout EPS
Total payout
Stock repurchase payout
2. Assume last year's ratios were:
Stockholder Payout Stockholder Profitability
Dividend yield: 1.05% Return on common equity: 34.26%
Dividend payout: 15.80% EPS: $3.51
Total payout: 75.00%
Stock repurchase payout: 59.20%
and the current year industry averages are:
Stockholder Payout Stockholder Profitability
Dividend yield: 0.76%% Return on common equity: 23.81%
Dividend payout: 42.35% EPS: $1.23
Total payout: 88.37%%
Stock repurchase payout: 46.02%
How do you interpret the company's payout and profitabilityperformance?
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger