Calculate the payout ratio and return on common


Question - The following financial information is available for Thompson Corporation.

(in millions)

2012

2011

Average common stockholders' equity

$2,532

$2,591

Dividends declared for common stockholders

298

611

Dividends declared for preferred stockholders

40

40

Net income

504

555

Calculate the payout ratio and return on common stockholders' equity ratio for 2012 and 2011. Comment on your findings.

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Accounting Basics: Calculate the payout ratio and return on common
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