Problem 10-88A Ratio Analysis Consider the following information taken from the stockholders' equity section: (dollar amounts in thousands) Preferred stock Common stock, 334,328,193 and 330,961,869 shares issued in 2020 and 2019, respectively Additional paid-in capital-common stock Retained earnings Accumulated other comprehensive (loss) income Treasury stock (76,275,837 and 56,960,213 shares in 2020 and 2019, respectively) at cost Total stockholders' equity $ 1,000 3,343 766,382 2020 2019 1,000 3,310 596,239 4,630,390 (206,662) 58,653 (3,267,955) (2,205,987) $ 2,756,737 $ 3,083,605 5,460,629 Additional Information (all numbers in thousands other than per-share information): Weighted average common shares outstanding Price per share at year end Net income Preferred dividends Common dividends 2020 184,000 $105.45 $1,358,950 $100,000 Required: Common dividends per share Stock repurchases $213,440 $1.16 $834,975 1. Calculate the following for 2020. (Note: Round answers to two decimal places.) Stockholder Profitability Stockholder Payout Dividend yield Dividend payout Return on common equity EPS Total payout Stock repurchase payout 2. CONCEPTUAL CONNECTION Assume 2019 ratios were: Stockholder Payout Dividend yield: 0.85% Dividend payout: 9.80% Total payout: 70.00% Stock repurchase payout: 60.20% and the current year industry averages are: Stockholder Payout Dividend yield: 0.76% Dividend payout: 12.35% Total payout: 48.37% Stock repurchase payout: 36.02% Stockholder Profitability Return on common equity: 34.26% EPS: $3.51 Stockholder Profitability Return on common equity: 23.81% EPS: $1.23 How do you interpret the company's payout and profitability performance? OBJECTIVE 5