Question: Ioco Ltd. is a public company. You are provided with the following information for the years ended December 31, 2016 and 2017: Required: a. What

Ioco Ltd. is a public company. You are provided with the following information for the years ended December 31, 2016 and 2017:

Required:
a. What are the dividend payout ratio and dividend yield in each year? Explain what each amount means.
b. Why did the dividend yield change from 2016 to 2017 while the dividend payout ratio stayed the same?
c. What is preferred by investors, high or low dividend payout ratios and dividend yields?

2016 2017 Net income Earnings per share Common dividends per share Market value per share on December 31 Common shares outstanding during the year Note: There was no change in the number of common shares outstanding from January 1, 2018 to December 31, 2017 $125,000,000 S125,000,000 S1.25 S0.25 S7.10 100,000,000 $1.25 $0.25 $6.25 100,000,000

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