Solved

Use the Following Selected Financial Data from the Balance Sheet

Question 204

Essay

Use the following selected financial data from the balance sheet at the end of Year 2 and Year 1:
 Year 2 Year 1 Net income $110,000$123,000 Cash dividends paid on preferred shares $12,000$15,000 Cash dividends paid on common shares $42,000$38,000Common share repurchases$10,000$14,000Weighted average number of common shares outstanding105,00095,000Year-end market price per share of common shares$16.00$13.00\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Net income } & \$ 110,000 & \$ 123,000 \\\text { Cash dividends paid on preferred shares } & \$ 12,000 & \$ 15,000 \\\text { Cash dividends paid on common shares } & \$ 42,000 & \$ 38,000\\\text {Common share repurchases}&\$10,000&\$14,000\\\text {Weighted average number of common shares outstanding}&105,000&95,000\\ \text {Year-end market price per share of common shares}&\$16.00&\$13.00\end{array}

Using the information provided,address the following questions for both Year 2 and Year 1:
A) What is the dividend yield ratio?

B) What is the earnings per share measure?

C) What is the dividend payout ratio?

D) What is the total payout ratio?

E) What is the share repurchase payout ratio?

F) Comment on the change in the shareholders ratios fram Year 1 { \text {Year } } 1 to Year 2 { \text {Year } } 2

Correct Answer:

verifed

Verified

blured image_TB5500_00...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents