Recent changes in the U.S. federal tax code have increased the popularity of dividend-paying stocks for some
Question:
Recent changes in the U.S. federal tax code have increased the popularity of dividend-paying stocks for some investors. Shown here are the diluted net earnings per common share and the dividends per common share for the Procter & Gamble Company (P&G) for the years 1996–2005. (Source: 2005 P&G Annual Report.)
Year Diluted Net Earnings per Common Share Dividends per Common Share 1996 $1.00 $0.40 1997 $1.14 $0.45 1998 $1.28 $0.51 1999 $1.29 $0.57 2000 $1.23 $0.64 2001 $1.03 $0.70 2002 $1.54 $0.76 2003 $1.85 $0.82 2004 $2.32 $0.93 2005 $2.66 $1.03
a. Construct a line chart of diluted net earnings per common share for the years 1996–2005.
b. Construct a line chart of dividends per common share for the years 1996–2005.
c. Construct a chart that can be used to determine whether there is a relationship between the two variables for the years 1996–2005. What relationship, if any, appears to exist between the two variables?
Step by Step Answer:
Business Statistics A Decision Making Approach
ISBN: 9780136121015
8th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry, Kent D. Smith