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

	(dollar amount in thousands)
	2024			2023
Preferred stock	$1,000			$1,000
Common stock, 334,328,193 and 330,961,869 shares issued in 2024 and 2023, respectively	3,343			3,310
Additional paid-in capital - common stock	766,382			596,239
Retained earnings	5,460,629			4,630,390
Accumulated other comprehensive (loss) income	(206,662)			58,653
Treasury stock (76,275,837 and 56,960,213 shares in 2024 and 2023, respectively) at cost	(3,267,955)			(2,205,987)
Total stockholders' equity	$2,756,737			$3,083,605

 

 

Additional Information (all numbers in thousands other than per-share information):	2024
Weighted average common shares outstanding	264,453
Price per share at year end	$70.47
Net income	$1,123,153
Preferred dividends	$80,000
Common dividends	$212,914
Common dividends per share	$0.84
Stock repurchases	$1,061,968

Required:

1. Calculate the following for 2024. Round your answers to two decimal places.

 

Stockholder Payout:
Dividend yield	fill in the blank 1	%
Dividend payout	fill in the blank 2	%
Total payout	fill in the blank 3	%
Stock repurchase payout	fill in the blank 4	%
Stockholder Profitability:
Return on common equity	fill in the blank 5	%
EPS	$fill in the blank 6	per share

2. Conceptual Connection: Assume 2023 ratios were:

 

Stockholder Payout	Stockholder Profitability
Dividend yield: 0.85%	Return on common equity: 34.26%
Dividend payout: 9.80%	EPS: $3.51
Total payout: 70.00%
Stock repurchase payout: 60.20%

and the current year industry averages are:

 

Stockholder Payout	Stockholder Profitability
Dividend yield: 0.76%	Return on common equity: 23.81%
Dividend payout: 12.35%	EPS: $1.23
Total payout: 48.37%
Stock repurchase payout: 36.02%

How do you interpret the company's payout and profitability performance?

In 2024, only the stockholder profitability ratio is only the stockholder payout ratio is both the stockholder payout and stockholder profitability ratios are above the industry averages. Overall, this could indicate a good bad investment choice.

Answer rating: 100% (QA)

1 Calculate the following for 2024 Round your answers to two decimal places Stockholder Payout Dividend yield298 Dividend payout2104 Total payout2302 Stock repurchase payout3700 Stockholder Profitabil... View the full answer