Polycom Systems earned $553 million last year and paid out 25 percent of earnings in dividends. a.

Question:

Polycom Systems earned $553 million last year and paid out 25 percent of earnings in dividends.
a. By how much did the company’s retained earnings increase?
b. With 100 million shares outstanding and a stock price of $101, what was the yield?

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...