YR 3 (2021) YR 2 (2020) YR 1 (2019) CURRENT RATIO 2.8 2.5 2.0 ACID TEST RATIO 0.7 0.9 1.2 ACCOUNTS RECEIVABLE TURNOVER 8.6 9.5 10.4 INVENTORY TURNOVER 5.0 5.7 6.8 SALES TREND 130.0 118.0 100.0 DIVIDENDS PAID PER SHARE $ 2.50 $ 2.50 $ 2.50 DIVIDENDS YIELD RATIO 5% 4% 3% DIVIDEND PAYOUT RATIO 40% 50% 60% RETURN ON TOTAL ASSETS 13.0% 11.8% 10.4% RETURN ON COMMON STOCKHOLDERS' EQUITY 16.2% 14.5% 9.0%

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 76E
icon
Related questions
Question

Why dividen yield ratio increase while dividend payout ratio decrease? please explain

YR 3 (2021) YR 2 (2020) YR 1 (2019)
CURRENT RATIO
2.8
2.5
2.0
ACID TEST RATIO
0.7
0.9
1.2
ACCOUNTS RECEIVABLE TURNOVER
8.6
9.5
10.4
INVENTORY TURNOVER
5.0
5.7
6.8
SALES TREND
130.0
118.0
100.0
2.50 $
2.50 $
4%
DIVIDENDS PAID PER SHARE
$
2.50
DIVIDENDS YIELD RATIO
5%
3%
DIVIDEND PAYOUT RATIO
40%
50%
60%
RETURN ON TOTAL ASSETS
13.0%
11.8%
10.4%
RETURN ON COMMON STOCKHOLDERS' EQUITY
16.2%
14.5%
9.0%
Transcribed Image Text:YR 3 (2021) YR 2 (2020) YR 1 (2019) CURRENT RATIO 2.8 2.5 2.0 ACID TEST RATIO 0.7 0.9 1.2 ACCOUNTS RECEIVABLE TURNOVER 8.6 9.5 10.4 INVENTORY TURNOVER 5.0 5.7 6.8 SALES TREND 130.0 118.0 100.0 2.50 $ 2.50 $ 4% DIVIDENDS PAID PER SHARE $ 2.50 DIVIDENDS YIELD RATIO 5% 3% DIVIDEND PAYOUT RATIO 40% 50% 60% RETURN ON TOTAL ASSETS 13.0% 11.8% 10.4% RETURN ON COMMON STOCKHOLDERS' EQUITY 16.2% 14.5% 9.0%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning