ACC 221 Chapter : ShindlerEmily-ARP Pg12.pdf
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Consider the following information taken from the shareholders' equity section:
(dollar amounts in thousands) | |||||
2018 | 2017 | ||||
Preferred shares | $ 1,000 | $ 1,000 | |||
Common shares, 258,052,356 and 274,001,656 shares issued and outstanding in 2018 and 2017, respectively | 3,343 | 3,310 | |||
Contributed surplusâcommon shares | 766,382 | 596,239 | |||
Retained earnings | 2,192,674 | 2,424,403 | |||
Accumulated other comprehensive (loss) income | (206,662) | 58,653 | |||
Total shareholdersâ equity | $2,756,737 | $3,083,605 |
Additional Information (all numbers in thousands other than per share information): | 2018 | ||
Weighted average common shares outstanding | 260,000 | ||
Price per share at year-end | $105.45 | ||
Net income | $1,358,950 | ||
Preferred dividends | $100,000 | ||
Common dividends | $213,440 | ||
Common dividends per share | $.82 | ||
Share repurchases | $834,975 |
Required:
1. Calculate the following for 2018 (Note: Round answers to two decimal places):
Shareholder Payout: | ||
Dividend yield | % | |
Dividend payout | % | |
Total payout | % | |
Share repurchase payout | % | |
Shareholder Profitability: | ||
Return on common equity | % | |
EPS | $ | per share |
The following information has been gathered for MaletteManufacturing:
Net income | $5,000,000 |
Interest expense | 400,000 |
Average total assets | 60,000,000 |
Preferred dividends | 400,000 |
Common dividends | $1,200,000 |
Average common shares outstanding | 800,000 shares |
Average common stockholders' equity | $20,000,000 |
Market price per common share | $40 |
Assume that the firm has no common stock equivalents. The taxrate is 34%.
Required:
1. Compute the return on assets. Round youranswer to three decimal places.
2. Compute the return on common stockholders'equity. Round your answer to two decimal places.
3. Compute the earnings per share. Round youranswer to two decimal places.
$ per share
4. Compute the price-earnings ratio. Round youranswer to two decimal places.
5. Compute the dividend yield. Round youranswer to four decimal places.
6. Compute the dividend payout ratio. Roundyour answer to two decimal places.