The following summary of the payout, dividend yield, and earnings per share (in U.S. $) ratios is available for five years ended December 31 for Barrick Gold Corporation:

Instructions
(a) What are some possible reasons that Barrick Gold's dividend payout ratio declined from 44% in 2008 to 14% in 2010, while its dividend yield ratio changed very little-from 1.1% in 2008 to 1.0% in 2010? Note that there is no payout ratio available in 2009 or 2012 because of the loss incurred in those years.
(b) Why do you think Barrick Gold's dividend yield increased from 1% in 2011 to 2.2% in 2012, despite the fact that the company reported a loss in 2012?
(c) If you were one of Barrick Gold's creditors, what would you think about the company continuing to pay dividends (such as in 2009 and 2012) regardless of whether it reports a profit or a loss? Explain.

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Payout Ratio Dividend Yield Earnings per Share 2008 2009 2010 2011 2012 44% 1.1% 1.1 1.0 1.0 $0.96 (4.73) 3.50 4.49 (0.66) n/a 14 n/a