Consider the following information.
Stock price ................. $55/share ........ Avg. common shares outstanding ....... 850,000
Common dividends ....... $765,000 ......... Dividends per common share ....... $0.90/share
Preferred dividends ....... $238,800 ......... Net income ........................... $15,485,000
2019 preferred stock .... $6,162,000 ........ 2018 preferred stock ................... $5,299,000
2019 total stockholders'
equity .................... $28,435,000 ........ 2018 total stockholders' equity ..... $25,483,000
Purchases of treasury stock ... $120,000
Required:
1. Calculate the stockholder payout ratios.
2. Calculate the stockholder profitability ratios.