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: Dividend payout ratio = Cash dividends declared on common stock Net income Return on assets ratio: Return on assets determines the particular company’s overall earning power. Formula: Rate of return on assets = Net income Average total assets To find: The cash dividends and average total assets.

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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:

Dividend payout ratio = Cash dividends declared on common stockNet income

Return on assets ratio:

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

Formula:

Rate of return on assets=Net incomeAverage total assets

To find: The cash dividends and average total assets.

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