Dividend Payout Ratio Previous YearCurrent YearNet Income$35,000$48,000Average stockholders' equity1,000,0001,500,000Dividend per common share1.902.00Earnings per share2.853.20Market price per common share, year-end19.0021.00 Calculate the dividend payout for Evans & Sons for each year. Did the dividend payout increase? NumeratorDenominatorDividend Payout Ratio AnswerAnswer Previous YearAnswerAnswer Current YearAnswerAnswer

The dividend payout ratio is the financial formula which is used in determining the portion of…

Answered: Dividend Payout Ratio Previous Year…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 1P

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	Previous Year	Current Year
Net Income	$35,000	$48,000
Average stockholders' equity	1,000,000	1,500,000
Dividend per common share	1.90	2.00
Earnings per share	2.85	3.20
Market price per common share, year-end	19.00	21.00

	Numerator	Denominator
	Answer	Answer
Previous Year	Answer	Answer
Current Year	Answer	Answer

Similar questions

The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the following data (in milllions) for a recent year: Compute the return on stockholders equity. Round to one decimal place.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Income before income tax expense was 3,000,000, and income taxes were 1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled 1,200,000. The common stock was selling for 32 per share at the end of the year. Determine each of the following: (A) times interest earned ratio (B) earnings per share on common stock, (C) price-earnings ratio, (D) dividends per share of common stock, and (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.
Winston Watch’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?
Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Income before income tax was 3,000,000, and income taxes were 1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled 1,200,000. The common stock was selling for 32 per share at the end of the year. Determine each of the following: (a) times interest earned ratio, (b) earnings per share on common stock, (c) price-earnings ratio, (d) dividends per share of common stock, and (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.
Dividend Payout Ratio Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Previous Year Current Year Previous Year Current Year $45,500 $62,400 1,300,000 1,950,000 The dividend payout 2.47 2.85 24.70 Calculate the dividend payout for Evans & Sons for each year. Did the dividend payout increase? Numerator Denominator ♦ 2.60 3.20 27.30 0 0 ◆ from previous year to the current year. 0 0 Dividend Payout Ratio % %
Dividend Payout Ratio Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Previous Year Current Year Previous Year Current Year $45,500 $62,400 1,300,000 1,950,000 The dividend payout decreased 2.47 2.85 24.70 Calculate the dividend payout for Evans & Sons for each year. Did the dividend payout increase? Numerator Denominator X 2.60 3.20 27.30 X from previous year to the current year. X X X Dividend Payout Ratio % %
Dividend Yield Net Income Average stockholders' equity Dividend per common share Earnings per share Market price per common share, year-end Previous Year Current Year Previous Year Current Year $50,750 $69,600 1,450,000 2,175,000 The dividend payout 2.76 4.13 19.00 Calculate the dividend yield for Evans & Sons for each year. Did the dividend yield improve? Numerator Denominator ♦ 2.90 4.64 21.00 0 0 from previous year to the current year. 0 0 Dividend Yield % %
Dividend Yield The market price for Macro Corporation closed at $46.62 and $40.00 on December 31, current year, and previous year, respectively. The dividends per share were $0.69 for current year and $0.80 for previous year. a. Determine the dividend yield for Macro on December 31, current year, and previous year. Round percentages to two decimal places. Current year % Previous year % b. The dividend yield from the previous year to the current year. This is a result of a(n) in the dividend relative to stock price.
Dividend Yield Previous Year Current Year Net Income $35,000 $48,000 Average stockholders' equity 1,000,000 1,500,000 Dividend per common share 1.90 2.00 Earnings per share 2.85 3.20 Market price per common share, year-end 19.00 21.00 Calculate the dividend yield for Evans & Sons for each year. Did the dividend yield improve? Numerator Denominator Dividend Yield Answer Answer Previous Year Answer Answer Current Year Answer Answer The dividend payout Answer from previous year to the current year.

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