The following selected information is available for two competitors, Nike, Inc. and Adidas AG: (in millions, except

Question:

The following selected information is available for two competitors, Nike, Inc. and Adidas AG:
(in millions, except for per-share information) Nike (in U.S. $) Adidas (in euros)
Market price per share.......................................................$62.50...............................€89.91
Dividends declared and paid.................................................931....................................320
Dividends per share..............................................................1.08...................................1.60
Net income..........................................................................3,273...................................634
Instructions
(a) Calculate the (1) payout and (2) yield ratios for each company.
(b) Which company would investors favour for income purposes? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...