The following selected information is available for two competitors, Nike, Inc. and Adidas AG:
(in millions, except for per-share information) Nike (in U.S. $) Adidas (in euros)
Market price per share.......................................................$62.50...............................€89.91
Dividends declared and paid.................................................931....................................320
Dividends per share..............................................................1.08...................................1.60
Net income..........................................................................3,273...................................634
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.