Ratio AnalysisConsider the following information taken from the shareholders' equity section: (dollar amounts in thousands) 20182017Preferred shares$ 1,000 $ 1,000 Common shares, 258,052,356 and 274,001,656 shares issued and outstanding in 2018 and 2017, respectively3,343 3,310 Contributed surplus—common shares766,382 596,239 Retained earnings2,192,674 2,424,403 Accumulated other comprehensive (loss) income(206,662) 58,653 Total shareholders’ equity$2,756,737 $3,083,605 Additional Information (all numbers in thousands other than per share information):2018Weighted average common shares outstanding260,000 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

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Answered: 1. Calculate the following for 2018…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ratio Analysis

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 surplus—common shares	766,382		596,239
Retained earnings	2,192,674		2,424,403
Accumulated other comprehensive (loss) income	(206,662)		58,653
Total shareholders’ 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

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