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Dahasolnce [82]
3 years ago
14

The following financial information is available for Flint Corporation.

Business
1 answer:
kotegsom [21]3 years ago
3 0

Answer:

dividends payout ratio = total dividends / net income

  • dividends payout ratio 2016 = $630 / $685 = 0.9197 = 91.97%
  • dividends payout ratio 2017 = $335 / $605 = 0.5537 = 55.37%

return on equity = (net income - preferred dividends) / average equity

  • return on equity 2016 = ($685 - $45) / $2,925 = 0.2188 = 21.88%
  • return on equity 2017 = ($605 - $45) / $2,825 = 0.1982 = 19.82%
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