Refer to the financial statements and the notes to the financial statements. THE
ID: 2588185 • Letter: R
Question
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)
Price_________on date___________
a. Dividend payout ratio = Total cash dividends paid on common stock Net income
Current Year__________________
Last year _________________
b. Dividend yield = Dividends paid per share / Stock price at year-end
Current Year__________________
Last year _________________
c.
Earnings per share
(provided in income statement)
Current Year__________________
Last year _________________
d. Price-earnings ratio = Market price per share of stock / Earnings per share
Current Year__________________
Last year _________________
e. Return on common stockholders’ equity = (Net income – preferred stock dividends) / Average
common stockholders’ equity
Current Year__________________
Consolidated Statements of Cash Flows millions Operating activities Net earnings / (loss) Eamings / (losses) from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net earnings to cash provided by operations: 2014 (1,636) 085 2,449 2.737 S 3,363 S 2,669 3,321 2.129 Depreciation and amortization Share-based compensation expense Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (gains)/losses and other, net Changes in operating accounts: 2,213 (322) Other assets Accounts payable and accrued liabilities 803 5,157 579 5,254 704 5,958 5,329 Cash provided by operating activities-continuing operations Cash provided byr Cash provided by operations Investing activities 107 5,436 equired for) operating activitio tinued operations 4.465 (1,438) 28 1,875 (1,786) 95 (1,547) Expenditures for property and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses Cash paid for acquisitions, net of cash assumed Other investments (20) 106 (1,605) 321 (1,926 Cash (required for)/provided by investing activities--continuing operations Cash provided by /required for) investing Cash crequired for) / provided by investing activities Financing activities scontinued operations (1,473) Change in commercial paper, net Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises 1,993 (2,079) 1,977 (2.641) (1,348) (3,706) (85) (1,362) (3,483) 300 (5,497) (1,024) Cash required for financing activities Net (decrease)/ increase in cash and cash equivalents (1,534) 4,046 2,512 S 1,836 2,210 4,046 S 695 of period ( 2,210 Cash and cash equivalents at end of period Supplemental information 999 S 1,514 604 $ Interest paid, net of capitalized interest Income taxes paid / (refunded) 1.251 Includes cash of our discontinued operations of $25 million at February 1, 2014 accompanying Notes to Consolidated Financial Statements.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