Selected financial statement information for Home Depot is given in the table below. Using this information, answer the following questions: (all numbers in millions) Retained earnings balance €” 01/29/06 $28,686 million

1. Compute Home Depot€™s retained earnings balance at the end of each year.
2. Divide dividends by net income for each year. The result is termed the €œdividend payout ratio.€ Did Home Depot€™s dividend payout ratio increase or decrease overtime?

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Net Income Dividends For year ended January 28, 2007 For year ended February 3, 2008 For year ended February 1, 2009 S5,761 4,395 2,260 S1,395 1,709 1,521