Review the information relating to EPS found in The Walt Disney Company's 2009 income statement and notes

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Review the information relating to EPS found in The Walt Disney Company's 2009 income statement and notes to the financial statements on the Internet. Answer the following questions.
1. Using the information provided on the face of the income statement relating to net income and average number of shares outstanding, verify Disney's reported basic EPS figure.
2. From the statement of cash flows, we see that Disney paid dividends of $648 million in 2009. Using the average number of Disney common shares outstanding from the EPS computation in (1), compute the approximate dividends paid per share. Using this number, compute the dividend payout ratio for Disney.
3. Can you determine from the notes Disney has effected any stock splits recently. How do stock splits affect the presentation of the prior year's information?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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...
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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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