January 28, 2017 and January 30, 2016 January 28, 2017 and January 30, 2016 Stud

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January 28, 2017 and January 30, 2016

January 28, 2017 and January 30, 2016

Student Name(s), Company Accounting II Company Analysis Project Owner's Equity Questions Refer to the financial statements and the notes to the financial statements. Ow RSYhares of common sock hare ben see? THE BASICS How many shares are outstanding? If these numbers differ, explain why 2. Does the company have any preferred stock outstanding? If so, how many shares? Par value Dividend rate FURTHER ANALYSIS 1. Calculate the following ratios for each of the three years presented in the stockholders' equity statement. (You may be able to find the year-end stock price in the financial review or financial highlights section of the annual report. If the year-end price is not available, compute the average of the high and low prices for the fourth quarter. Show your Market Update: (Stock price this week) Price on date_ Dividend payout ratio = Total cash dividends paid on common stockNet income Current Year Last year b. Dividend yield = Dividends paid per share , Stock price at year-end Current Year Last year Earnings per share (provided in income statement) Current Year Last year Price-earnings ratio Market price per share of stock /Earnings per share Current Year Last year Return on common stockholders' equity c. d. e. (Net income-preferred stock dividends) /Average common stockholders' equity Current Year Last year Page 1

Explanation / Answer

The basics:

1. Jan 2016: 602,226,517 shares issued and outstanding.

Jan 2017: 556,156,228 shares issued and outstanding

Reason for difference between the opening and closing numbers at the close of the accounting year is that the difference number of shares have been bought back which is 50.9 millions.

2. No number of preferred shares issued or outstanding. Par value of 500,000,000 authorised preferred shares is $0.01 per share.

Further analysis:

Market price is $46 on January 28, 2017

a. DPR:

Current year(2016): Dividend paid/Net income= 1348/2737= 0.49

Last year (2015): 1362/3363= 0.41

b. Dividend yield:

Current year (2016): Dividend paid per share/stock price at year end= 2.36/50= 0.0472

Last year (2015): 2.20/53= 0.042

c. Earning per share:

Current year: $4.74

Last year : $5.35

d. Price earning ratio:

Current year: 50/4.74= 10.55

Last year: 53/5.35= 9.91

e. ROE:

Current year: 2,737/(602.2+640.2)= 220.3%

Last year: 3,363/(640.2+632.9)= 264.16%

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