Chapter 13, Problem 13.14BE

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the capabilities, profitability, and overall performance of a company.

Dividend payout ratio: Dividend payout ratio is the ratio used to measure the share of earnings in terms of percentage paid towards the shareholders.

Formula:

$\text{Dividend payout ratio }=\frac{\text{Cash}\text{dividends}\text{declared}\text{on}\text{common}\text{stock}}{\text{Net income}}$

Return on assets ratio:

Return on assets determines the particular company’s overall earning power.

Formula:

$\text{Rate of return on assets}=\frac{\text{Net}\text{income}}{\text{Average total assets}}$

To find: The cash dividends and average total assets.