The following selected information is available for two competitors, Nike, Inc. and Adidas AG:

(in millions, except for per share information)     Nike            Adidas

                                                                                (in U.S. $)      (in euros)

Market price per share ....................................$53.68........... €67.33

Total cash dividends ..........................................619................ 282

Dividends per share .........................................1.565.............. 1.35

Profit ....................................................................2,223.............. 791

Instructions

(a) Calculate the (1) payout and (2) dividend yield ratios for each company.

(b) Which company would investors favour for dividend income purposes? Explain.