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:


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


Additional Information (all numbers in thousands other than per share information):
Weighted average common shares outstanding .......204,000
Price per share ...................... $ 65.31
Net income ........................ 1,224,600
Preferred dividends .................... 65,000
Common dividends ..................... 255,000
Common dividends per share ............... 1.25
Stock repurchases .....................775,000

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: 23.65% EPS: $6.12
Total payout: 88.59%
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: 25.83% EPS: $6.48
Total payout: 95.10%
Stock repurchase payout: 69.27%
How do you interpret the company's payout and profitabilityperformance?

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