Suppose the following financial information is available for Walgreen Company.

(in millions) 2014 2013 Average common stockholders’ equity $13,622.5 $11,986.5 Dividends declared for common stockholders 471 394 Dividends declared for preferred stockholders 0 0 Net income 2,006 2,157 Instructions Calculate the payout ratio and return on common stockholders’ equity for 2014 and 2013.

Comment on your findings.

AppendixLO1