Exercise 10-78 Ratio Analysis Consider the following information Stock price Common dividends Preferred dividends 2019 preferred stock 2019 total stockholders' equity Purchases of treasury stock Required: $55/share $765,000 $238,800 $6,162,000 $28,435,000 $120,000 Avg. common shares outstanding Dividends per common share Net Income 2018 preferred stock 2018 total stockholders' equity 850,000 $0.90/share $15,485,000 $5,299,000 $25,483,000 1. Calculate the stockholder payout ratios. (Note: Round answers to three decimal places) 1.636 Dividend Yield Dividend Payout 6.482 X % Total Payout 7.257 X Stock Repurchase Payout 0.775 % 2. Calculate the stockholder profitability ratios. (Note: Round answers as follows: Return on Common Equity to three decimal places; Earnings per Share to two decimal places.) 2019 Return on Common Equity 71.819 % Earnings per Share 17.94 per share Exercise 10-78 Ratio Analysis Consider the following information Stock price $55/share Avg. common shares outstanding Common dividends $765,000 Dividends per common share Preferred dividends $238,800 Net Income 2019 preferred stock $6,162,000 2018 preferred stock 2019 total stockholders' equity $28,435,000 2018 total stockholders' equity Purchases of treasury stock $120,000 Required: 1. Calculate the stockholder payout ratios. (Note: Round answers to three decimal places.) Dividend Yield % Dividend Payout 7.257 x 850,000 $0.90/share $15,485,000 $5,299,000 $25,483,000 Total Payout 6.482 Stock Repurchase Payout 0.775 2. Calculate the stockholder profitability ratios. (Note: Round answers as follows: Return on Common Equity to three decimal places, Earnings per Share to two decimal places.) 2019 Return on Common Equity 71.819 96 Earnings per Share 17.94 per share