Describe how volatile the payout ratios are based on earnings and cash flows. 2020201920182017201620152014201320122011Dividends Payout Ratio25 5%34.3%26.8%27.2%25.2%29.7%23.4%22.6%19.1%18.0%Dividends Per Share$1.59$155$135$1.13$1.02$0.83$0.78$0.73$0.66$0 50Cash Flow Per Share$1395$7.08$1.42$1.99$11.18$2.51$4.78-$0.79$6.56$2.1495.0%$5.03-91.8%$3.22Cash Flow Payout Ratio11.4%21.8%56.7%9.1%32.9%16.2%10.1%23.2%Eamings Per Share$6.25$451$4.14$4.03$2.78$331$3.46$2.76

Dividends payout ratio can be defined as the paying out the dividends to its shareholders on the…

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Accounting

Describe how volatile the payout ratios are based on earnings and cash flows.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Describe how volatile the payout ratios are based on earnings and cash flows.

2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
Dividends Payout Ratio
25 5%
34.3%
26.8%
27.2%
25.2%
29.7%
23.4%
22.6%
19.1%
18.0%
Dividends Per Share
$1.59
$155
$135
$1.13
$1.02
$0.83
$0.78
$0.73
$0.66
$0 50
Cash Flow Per Share
$1395
$7.08
$1.42
$1.99
$11.18
$2.51
$4.78
-$0.79
$6.56
$2.14
95.0%
$5.03
-91.8%
$3.22
Cash Flow Payout Ratio
11.4%
21.8%
56.7%
9.1%
32.9%
16.2%
10.1%
23.2%
Eamings Per Share
$6.25
$451
$4.14
$4.03
$2.78
$331
$3.46
$2.76

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