Exercise 12-82 (Algorithmic) Stockholder Ratios

Financial statements for Remington Inc. follow.

Remington Inc.
Consolidated Statements of Income
(In thousands except per share amounts)
	2013		2012		2011
Net sales	$ 7,245,088		$ 6,944,296		$ 6,149,218
Cost of goods sold	(5,286,253)		(4,953,556)		(4,355,675)
Gross margin	$ 1,958,835		$ 1,990,740		$ 1,793,543
General and administrative expenses	(1,259,896)		(1,202,042)		(1,080,843)
Special and nonrecurring items	2,617		-		-
Operating income	$ 701,556		$ 788,698		$ 712,700
Interest expense	(63,685)		(62,398)		(63,927)
Other income	7,308		10,080		11,529
Gain on sale of investments	-		9,117		-
Income before income taxes	$ 645,179		$ 745,497		$ 660,302
Provision for income taxes	254,000		290,000		257,000
Net income	$ 391,179		$ 455,497		$ 403,302
Net income per share	$1.08		$1.25		$1.11

Remington Inc.
Consolidated Balance Sheets
(In thousands)
ASSETS			Dec. 31, 2013			Dec. 31, 2012
Current assets:
Cash and equivalents			$ 320,558			$ 41,235
Accounts receivable			1,056,911			837,377
Inventories			733,700			803,707
Other			109,456			101,811
Total current assets			$2,220,625			$1,784,130
Property and equipment, net			1,666,588			1,813,948
Other assets			247,892			248,372
Total assets			$4,135,105			$3,846,450
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable			$ 250,363			$ 309,092
Accrued expenses			347,892			274,220
Other current liabilities			15,700			-
Income taxes			93,489			137,466
Total current liabilities			$ 707,444			$ 720,778
Long-term debt			$ 650,000			$ 541,639
Deferred income taxes			275,101			274,844
Other long-term liabilities			61,267			41,572
Total liabilities			$1,693,812			$1,578,833
Stockholders' equity:
Preferred stock			$ 100,000			$ 100,000
Common stock			89,727			89,727
Additional paid-in-capital--common stock			128,906			127,776
Retained earnings			2,397,112			2,136,794
			$2,715,745			$2,454,297
Less: Treasury stock, at cost			(274,452)			(186,680)
Total stockholders' equity			$2,441,293			$2,267,617
Total liabilities and stockholders' equity			$4,135,105			$3,846,450

Use the information provided above and below to respond to the following requirements.

	Year ended December 31,
Item	2013	2012
Average number of common shares outstanding (thousands)	362,122	364,398
Preferred dividends (thousands)	$ 24,000	$ 24,000
Dividends per common share	$ 0.36	$ 1.54
Common Dividends (thousands)	130,861.00	561,172.30
Common stock repurchases	0	0
Market price per share:
High	$ 83.25	$ 79.10
Low	63.25	59.00
Close	78.42	66.36
At January 1, 2012, total stockholders' equity was $2,083,122 and there was no preferred stock.

Required:

1. Compute the earnings per share, return on common equity, dividend yield ratio, and dividend payout ratio (in percentage terms, rounded to two decimal places except for EPS, which should be rounded to nearest cent) for 2012 and 2013.

	2013		2012
Earnings per share	$ ?????		$ 1.18
Return on common equity	?????	%	????	%
Dividend yield ratio	0.46	%	2.32	%
Dividend payout ratio	33.45	%	123.20	%