The following financial information is available for Whitlock Corporation.

(in millions) 2014 2013 Average common stockholders’ equity $2,532 $2,591 Dividends declared for common stockholders 298 611 Dividends declared for preferred stockholders 40 40 Net income 504 555 Instructions Calculate the payout ratio and return on common stockholders’ equity for 2014 and 2013.

Comment on your findings.

AppendixLO1