General Motors Corporation had earnings per share of $5.62 for 2003 and $4.95 for 2004. In addition,

Question:

General Motors Corporation had earnings per share of $5.62 for 2003 and $4.95 for 2004. In addition, the dividend was $2.00 per share during these two years. The market price for GM closed at $40.17 per share on December 31, 2004.

a. Determine the dividend yield for General Motors on December 31, 2004. Round percentages to two decimal places.

b. Determine the 2003 and 2004 dividend payout ratio for General Motors. Round percentages to one decimal place.

c. Interpret these measures.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...