**Dividends and Net Income Details**- **Dividends declared for common stockholders:** - 2017: 490 - 2016: 410- **Dividends declared for preferred stockholders:** - 2017: 0 - 2016: 0- **Net income:** - 2017: 1,840 - 2016: 2,140**Instructions:**Calculate the payout ratio and return on common stockholders' equity for 2017 and 2016. (Round answers to 1 decimal place, e.g., 12.5%)**Form:**- **2017** - Payout ratio: ___ % - Return on common stockholders’ equity: ___ %- **2016** - Payout ratio: ___ % - Return on common stockholders’ equity: ___ % Suppose the following financial information is available for Walgreen Company.**(in millions)**| | 2017 | 2016 ||------------------------|------------|------------|| Average common stockholders’ equity | $12,880.0 | $11,580.0 || Dividends declared for common stockholders | 490 | 410 || Dividends declared for preferred stockholders | 0 | 0 || Net income | 1,840 | 2,140 |Calculate the payout ratio and return on common stockholders' equity for 2017 and 2016. (*Round answers to 1 decimal place, e.g. 12.5%.*)| | 2017 | 2016 ||------------------------|------------|------------|| Payout ratio | | || Return on common stockholders’ equity | | |

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Description: **Dividends and Net Income Details**- **Dividends declared for common stockholders:** - 2017: 490 - 2016: 410- **Dividends declared for preferred stockholders:** - 2017: 0 - 2016: 0- **Net income:** - 2017: 1,840 - 2016: 2,140**Instructions:**

Ratio Analysis - 1. Payout Ratio - The payout ratio represents how much % of the net income of the company is distributed as a dividend. 2. Return on Common Stockholder's Equity - This ratio shows the return earned by the common shareholders of the company. Ratio Analysis -

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Accounting

Suppose the following financial information is available for Walgreen Company. (in millions) 2017 2016 Average common stockholders' equity $12,880.0 $11,580.0 Dividends declared for common stockholders 490 410 Dividends declared for preferred stockholders Net income 1,840 2,140 Calculate the payout ratio and return on common stockholders' equity for 2017 and 2016. (Round answers to 1 decimal place, e.g 12.5%.)

Suppose the following financial information is available for Walgreen Company. (in millions) 2017 2016 Average common stockholders' equity $12,880.0 $11,580.0 Dividends declared for common stockholders 490 410 Dividends declared for preferred stockholders Net income 1,840 2,140 Calculate the payout ratio and return on common stockholders' equity for 2017 and 2016. (Round answers to 1 decimal place, e.g 12.5%.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Practice Pack

OFFON

**Dividends and Net Income Details**

- **Dividends declared for common stockholders:**
- 2017: 490
- 2016: 410

- **Dividends declared for preferred stockholders:**
- 2017: 0
- 2016: 0

- **Net income:**
- 2017: 1,840
- 2016: 2,140

**Instructions:**
Calculate the payout ratio and return on common stockholders' equity for 2017 and 2016. (Round answers to 1 decimal place, e.g., 12.5%)

**Form:**
- **2017**
- Payout ratio: ___ %
- Return on common stockholders’ equity: ___ %

- **2016**
- Payout ratio: ___ %
- Return on common stockholders’ equity: ___ %

Suppose the following financial information is available for Walgreen Company.

**(in millions)**

| | 2017 | 2016 |
|------------------------|------------|------------|
| Average common stockholders’ equity | $12,880.0 | $11,580.0 |
| Dividends declared for common stockholders | 490 | 410 |
| Dividends declared for preferred stockholders | 0 | 0 |
| Net income | 1,840 | 2,140 |

Calculate the payout ratio and return on common stockholders' equity for 2017 and 2016. (*Round answers to 1 decimal place, e.g. 12.5%.*)

| | 2017 | 2016 |
|------------------------|------------|------------|
| Payout ratio | | |
| Return on common stockholders’ equity | | |

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