Consider the following information taken from the stockholders equity section: Required: 1. Calculate the following (Note: Round

Question:

Consider the following information taken from the stockholders€™ equity section:
Consider the following information taken from the stockholders€™ equity section:

Required:
1. Calculate the following (Note: Round answers to two decimal places):
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 and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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