While eating his Kellogg's Frosted Flakes one January morning, Tony noticed the following article in his local

Question:

While eating his Kellogg's Frosted Flakes one January morning, Tony noticed the following article in his local paper:
Kellogg Company Reports Fourth-Quarter and Full-Year Results and Provides Guidance For 2016 (in part) BATTLE CREEK, Mich., Feb. 11, 2016 /PRNewswire/-Kellogg Company (NYSE: K) Reported full-year 2015 net earnings $614 million, or $1.72 per share.
As a shareholder, Tony is well aware that Kellogg pays a regular cash of $0.50 per share quarterly. A quick click on a price quote service indicated that Kellogg's shares closed at $72.27 on December 31.
Required:
1. Using the numbers provided, determine the price-earnings ratio for Kellogg Company for 2015. What information does this ratio impart?
2. What is the payout ratio for Kellogg? What does it indicate?
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...