Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 679 $ 898 $ 743 Other assets 2,414 1,921 1,720 Total assets $ 3,093 $ 2,819 $ 2,463 Current liabilities $ 563 $ 804 $ 711 Long-term liabilities 1,522 988 833 Stockholders’ equity 1,008 1,027 919 Total liabilities and stockholders' equity $ 3,093 $ 2,819 $ 2,463 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $ 3,051 $ 2,914 Operating income 297 311 Interest expense 85 66 Net income 194 189 Other data: Average number of common shares outstanding 41.4 46.8 Total dividends paid $ 51.0 $ 52.4 If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of the stock? Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. Calculate the dividend payout ratio for 2020.

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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Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:

WIPER INC.
Condensed Balance Sheets
December 31, 2020, 2019, 2018
(in millions)
	2020	2019	2018
Current assets	$	679		$	898	$	743
Other assets		2,414			1,921		1,720
Total assets	$	3,093		$	2,819	$	2,463
Current liabilities	$	563		$	804	$	711
Long-term liabilities		1,522			988		833
Stockholders’ equity		1,008			1,027		919
Total liabilities and stockholders' equity	$	3,093		$	2,819	$	2,463

WIPER INC.
Selected Income Statement and Other Data
For the year Ended December 31, 2020 and 2019
(in millions)
	2020	2019
Income statement data:
Sales	$	3,051	$	2,914
Operating income		297		311
Interest expense		85		66
Net income		194		189
Other data:
Average number of common shares outstanding		41.4		46.8
Total dividends paid	$	51.0	$	52.4

If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of the stock?
Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
Calculate the dividend payout ratio for 2020.

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