Kellogg's EPS; PE ratio; dividend payout
Response to the following problem:
While eating his Kellogg 's Frosted Flakes one January morning, Tony noticed the following article in his local paper:
BATTLE CREEK, Mich., Feb. 6, 2014 /PRNewswire/-Kellogg Company (NYSE: K) Reported full-year 20 were $1.8 billion, or $4.94 per diluted share.
As a shareholder, Tony is well aware that Kellogg pays a regular cash dividend of $0.46 per share quarterly. A quick click on a price quote service indicated that Kellogg's shares closed at $61.07 on December 31.
Required:
1. Using the numbers provided, determine the price/earnings ratio for Kellogg Company for 2013. What information does this ratio impart?
2. What is the dividend payout ratio for Kellogg? What does it indicate?