L012-3, LO12-5 Home Depot, Inc.'s income statements for 2016, 2017, and 2018 show basic earnings per share EXERCISE 12.15 of $6.47, $7.33, and $9.78, respectively. Diluted earnings per share figures are slightly lower than EPS and Dividends Using these numbers, indicating the impact of potential capital stock activity that could reduce earnings Home Depot, Inc., Financial per share for current stockholders. Statements The company paid cash dividends of $2.76 per share in 2016, $3.56 per share in 2017, and $4.12 per share in 2018. These amounts are included in a Stockholders' Equity note to the financial state- ments that is not included in Appendix A. a. Why do you think Home Depot is paying out considerably less than its earnings per share to stockholders in the form of cash dividends? b. If you were an investor in Home Depot's stock, would you be unhappy because your dividends 050 086 represented only 40-50 percent of the company's net income