Review the information relating to EPS found in The Walt Disney Companys income statement and notes to the financial statements on the Internet Answer the following questions 1 Using the information provided on the face of the income statement relating to net income and average number of shares out...

1 This question is a simple mathematical exercise to demonstrate to students that the difficult ...

Review the information relating to EPS found in The Walt Disney Companys income statement and notes to

Question:

Review the information relating to EPS found in The Walt Disney Company’s income statement and notes to the on the Internet.
Answer the following questions.
1. Using the information provided on the face of the income statement relating to net income and average number of shares outstanding, verify Disney’s reported EPS figure.
2. From the statement of cash flows, we see that Disney paid dividends of $430 million in 2004. Using the average number of Disney common shares outstanding from the EPS computation in (1), compute the approximate dividends paid per share. Using this number, compute the payout ratio for Disney. Comment on your results.
3. Search the notes to determine whether Disney has effected any stock splits recently. How do stock splits affect the presentation of the prior year’s information?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...