5. (10 points) The following financial results come from the annual report of McDonald's: EPS Dividends 2013 5.55 3.12 2014 4.82 3.28 2015 4.8 3.44 2016 5.44 3.61 2017 6.37 3.83 2018 7.54 4.19 Total dividend CF Net income Revenue 3,115 3,216 5,586 4,758 28,106 27,441 3,230 4,529 25,413 3,058 3,089 3,256 4,687 5.192 5,924 24,622 22.820 21,025 A. Calculate the payout ratio for each of the six years. B. Describe the pattern of dividends that you observe (in terms of dollar amount and payout ratio over time). C. Assume that the total budget has been only $5,000 in each of the past 6 years. What is the implied target equity ratio in each year? (10 points) The following financial results come from the annual report of McDonald's EPS Dividends 2013 5.55 3.12 2014 4.82 3.28 2015 4.8 3.44 2016 5.44 3.61 2017 6.37 3.83 2018 7.54 4.19 Total dividend CF Net income Revenue 3,115 3,216 5,586 4,758 28,106 27.441 3,230 4,529 25,413 3,058 4,687 24,622 3,089 5,192 22.820 3,256 5,924 21,025 A. Calculate the payout ratio for each of the six years. B. Describe the pattern of dividends that you observe (in terms of dollar amount and payou ratio over time) C. Assume that the total budget has been only $5,000 in each of the past 6 years. What is the implied target equity ratio in each year? DOLL