(Dollars are stated in $millions) INCOME STATEMENT BALANCE SHEETS 2015 2016 2015 2016 2015 2016 Net Sales 8,360 9,610 Cash 310 405 Accounts payable 2,720 2,860 Cost of goods sold 5,247 6,310 Accounts rec. 2,640 3,055 Notes payable 100 0 Depreciation 1,340 1,370 Inventory 3,275 3,850 Current liabilities 2,820 2,860 EBIT 1,773 1,930 Current assets 6,225 7,310 Long-term debt 7,875 7,810 Interest 620 630 Net fixed assets 10,960 10,670 Common stock 5,000 5,250 Taxable income 1,153 1,300 Retained earnings 1,490 2,060 Taxes 403 455 Total assets 17,185 17,980 Total liabilities and equity 17,185 17,980 Net Income 750 845 Shares outstanding 50,000 Market price $23.37

What is the 2016 payout ratio? (Payout ratio is the proportion of net income paid out individends).

Use the Dupont Identify to calculate the 2016 ROE. Profitability Asset turns Equity multiplier ROE