Consider the following information taken from the shareholders\' equity section:

Question

Consider the following information taken from the shareholders' equity section:

Required:

1. Calculate the following for 2018 (Note: Round answers to two decimal places):

(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

Explanation / Answer

1)

a. Dividend Yield = Dividend per Share / Market Value per share

= $0.82 / $105.45

= 0.78%

b. Dividend Payout = Total Dividend / Net Income

= $213440 / $1358950

= 15.71%

c. Total Payout = (Preferred Dividend + Common Dividend) / Net Income

= ($100000 + $213440) / $1358950

= 23.06%

d. Share Repurchase Payout = Share Repurchase / Net Income

= $834975 / $1358950

= 61.44%

2).

a. Return on common equity = Net income / Value of common equity

= $1358950 / (260000*$105.45)

= $1358950 / $27417000

= 4.96%

b. Earning Per Share = Net Income / No. of Common Shares

= $1358950 / 260000

= $5.23 per common share

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