You are analyzing the dividend policy of Black and Decker, a manufacturer of tools and appliances. The following table summarizes the dividend payout ratios, yields, and expected growth rates of other firms in the waste disposal business.

a. Compare Black and Decker€™s dividend policy to those of its peers, using the average dividend payout ratios and yields.
b. Do the same comparison, controlling for differences, in expected growth.

Transcribed Image Text:

Payout Ratio(%) Dividend Yield (%) Expected Growth(%) Company Fedders Maytag National Presto Toro Whirlpool Black & Decker 37 67 15 30 24 2.8 4.9 1.5 2.5 1.3 11.0 23.0 13.5 16.5 20.5 23.0