RATIO ANALYSIS Consider the following information taken from the stockholders’ equity section:

(dollar amount in thousands)
2009 2008 Preferred stock $ 1,000 $ 2,000 Common stock, 230,000,000 and 176,000,000 shares issued in 2009 and 2008, respectively 2,300 1,760 Paid-in capital in excess of par 567,000 432,000 Retained earnings 4,604,600 3,700,000 Accumulated other comprehensive (loss) income (454,600) 147,000 Treasury stock (37,000,000 and 19,000,000 shares in 2009 and 2008, respectively) at cost (1,750,000) (975,000)
Total stockholders’ equity $ 2,970,300 $3,307,760 Additional Information (all numbers in thousands other than per share information):
Weighted average common shares outstanding 204,000 Price per share $ 65.31 Net income 1,224,600 Preferred dividends 65,000 Common dividends 255,000 Common dividends per share 1.25 Stock repurchases 775,000 Required:
. Calculate the following:
Stockholder Payout Stockholder Profitability Dividend yield Return on common equity Dividend payout EPS Total payout Stock repurchase payout . Assume last year’s ratios were:
Stockholder Payout Stockholder Profitability Dividend yield: 2.31% Return on common equity: 37.41%
Dividend payout: 23.65% EPS: $6.12 Total payout: 88.59%
Stock repurchase payout: 64.94%
and the current year industry averages are:
Stockholder Payout Stockholder Profitability Dividend yield: 2.50% Return on common equity: 44.44%
Dividend payout: 25.83% EPS: $6.48 Total payout: 95.10%
Stock repurchase payout: 69.27%
How do you interpret the company’s payout and profitability performance?
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