Student Name(s) - compan-a Car Accounting II Company Analysis Project Owner\'s E
ID: 2585861 • Letter: S
Question
Student Name(s) - compan-a Car Accounting II Company Analysis Project Owner's Equity Questions Refer to the financial statements and the notes to the financial statements. THE BASICS 1. How many shares of common stock have been issued? 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 computations Market Update: (Stock price this week) Priceon date Total cash dividends paid on common stock Net income Dividend payout ratio Current Year Last year a. 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 c. d. Price-earnings ratio Market price per share of stock/ Earnings per share Current Year Last year Return on common stockholders' equity . (Net income-preferred stock dividends) e. Average common stockholders' equity Current Year Last year __Explanation / Answer
2016 2015 1. How many shares of common stock have been issued? 556156228 602226517 How many shares are outstanding ? 556156228 602226517 2. Does the compnay have any preferred stock outstanding Nil nil If so how many shares , par value Dividend rate a. Dividend payout ratio= Dividend paid/ Net income 49% 40% b. Dividend yield = Dividend per share / year end stock price 3.2% 3.0% c. Earnings per share $4.70 $5.31 d. Price - earnings ratio = Market price per share/ earnings per share 15.47 13.86 e. Return on stockholders equity 23% 25% = (Net income - preferred stock dividend )/ average common stockholders' equity Workings: Dividend paid (from funds flow statement) 1348 1362 Net income 2737 3363 Dividend per share $2.36 $2.20 Year end stock price $72.73 $73.62 Beginning stockholders' equity 12957 13997 Ending stockholders' equity 10953 12957 Average stockholders' equity 11955 13477