- Problem 10 88a Ratio Analysis Consider The Following Information Taken From The Stockholders Equity Section Preferred 1 (160.34 KiB) Viewed 10 times
Problem 10-88A Ratio Analysis Consider the following information taken from the stockholders' equity section: Preferred stock Common stock, 334,328,193 and 330,961,869 shares issued in 2020 and 2019, respectively Additional paid-in capital-common stock Retained earnings 2. Accumulated other comprehensive (loss) income Treasury stock (76,275,837 and 56,960,213 shares in 2020 and 2019, respectively) at cost Total stockholders' equity Weighted average common shares outstanding Price per share at year end Net income Preferred dividends Common dividends Common dividends per share Stock repurchases Additional Information (all numbers in thousands other than per-share information): Total payout Stock repurchase payout (dollar amounts in thousands) 2020 2019 $ Total payout: 70.00% Stock repurchase payout: 60.20% and the current year industry averages are: Stockholder Payout Dividend yield: 0.76% Dividend payout: 12.35% 3.343 766,382 5,460,629 (206,662) 1,000 (3,267,955) $ 2,756,737 CONCEPTUAL CONNECTION Assume 2019 ratios were: Stockholder Payout Dividend yield: 0.85% Dividend payout: 9.80% S Required: 1. Calculate the following for 2020. (Note: Round answers to two decimal places.) Stockholder Payout Dividend yield Dividend payout 1,000 3.310 596,239 4,630,390 58,653 (2,205,987) $ 3,083,605 2020 184,000 $105.45 $1,358,950 $100,000 $213,440 $1.16 $834,975 Stockholder Profitability Return on common equity EPS Stockholder Profitability Return on common equity: 34.26% EPS: $3.51 Total payout: 48.37% Stock repurchase payout: 36.02% How do you interpret the
company's payout and profitability performance? Stockholder Profitability Return on common equity: 23.81% EPS: $1.23 OBJECTIVE 5