Paragraph 6 I 1 1 2 Data Visualization 19-1 EPS and dividend payout You are considening investing in the common stock of Dream Cabinets Corporation (DCC), Nearing retirement, one of your investment objectives is the promise of consistent dividends and relatively low risk To aid in your analysis, you enlisted Excel to chart relevant data from the most recent five years from DCC's financial statements EARNINGS PER SHARE AND DIVIDENDS $6.00 70% 60% $5.00 50% $4.00 40% $3.00 30% $2.00 20% $1.00 10% 50.00 0% EPS DIvidends Payo Ro Payout Ratio 3 4 6 I 70% $6.00 60% $5.00 50% $4.00 40% $3.00 30% $2.00 20% $1.00 10% $0.00 3 4 EPS Dividends Payot Ratio Required: 1. What do you observe regarding the payment of dividends over the most recent five years? 2. What seems to be the reason for the slight decline in the dividend payout ratio in Year 5? 3. What might you conclude about the risk of not receiving dividends in the foreseeable future? Payout Ratio