Consider the following information taken from the stockholders' equity section: Additional Information (all numbers in thousands other

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Consider the following information taken from the stockholders' equity section:

(dollar amounts in thous ands) 2020 1,000 2019 2,000 Preferred stock Common stock, 230,000,000 and 176,000,000 shares is

Additional Information (all numbers in thousands other
than per-share information): _______________________________________ 2020
Weighted average common shares outstanding ................................... 200,000
Price per share at year end ............................................................. $58.30
Net income ......................................................................... $1,584,000
Preferred dividends ................................................................... $50,000
Common dividends .................................................................. $300,000
Common dividends per share ........................................................... $1.50
Stock repurchases .................................................................... $850,000
Required:
1. Calculate the following.
Stockholder Payout ________________ Stockholder Profitability
Dividend yield ............................... Return on common equity
Dividend payout .............................. EPS
Total payout
Stock repurchase payout
2. Assume last year's ratios were:
Stockholder Payout ___________________ Stockholder Profitability
Dividend yield: 2.31% ......................... Return on common equity: 37.41%
Dividend payout: 13.65% ..................... EPS: $6.12
Total payout: 78.59%
Stock repurchase payout: 64.94%
and the current year industry averages are:
Stockholder Payout __________________ Stockholder Profitability
Dividend yield: 2.50% ......................... Return on common equity: 44.44%
Dividend payout: 15.10% ..................... EPS: $6.48
Total payout: 55.10%
Stock repurchase payout: 40.00%
How do you interpret the company's payout and profitability performance?

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Related Book For  book-img-for-question

Cornerstones of Financial Accounting

ISBN: 978-1337690898

4th edition

Authors: Jay Rich, Jeff Jones

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