Question

Dashboard G Google Link Lety... W DOOR 2.5 pts Question 4 Suppose Fruiticana, Inc. is a retail store chain operating in the lower main land area. The following are selected information in CAD$ for Fruticana. All units are in millions, except the per share information: Net Income Dividends declared and paid Shareholders' Equity Weighted Average Number of Shares Dividends per Share Market Price Per Share 2019 2018 47.1 52.9 14.5 11.6 370.5 367.5 28.9 28.9 0.50 0.40 26.34 24.74 Calculate the following ratios. Use two decimal points when calculating all steps and the final answer. Do NOT use units, spaces or commas in your answer. a. Payout Ratio (%) for 2019- b. Dividend Yield (%) for 2019 -

Answer 1

Payout ratio = (Dividends per share / Earnings per share)

Earnings per share = Net Income / Weighted average number of shares

Earnings per share = $47,100,000 / 28,900,000 = $1.63

payout ratio = $0.50 / $1.63 = 0.3067 or

payout ratio = 30.67%

Dividend Yield = Dividend / Market price per share

Dividend Yield = $0.50 / $26.34

Dividend Yield = 1.90%