Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 679 $ 898 $ 743 Other assets 2,414 1,921 1,720 Total assets $ 3,093 $ 2,819 $ 2,463 Current liabilities $ 563 $ 804 $ 711 Long-term liabilities 1,522 988 833 Stockholders’ equity 1,008 1,027 919 Total liabilities and stockholders' equity $ 3,093 $ 2,819 $ 2,463 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $ 3,051 $ 2,914 Operating income 297 311 Interest expense 85 66 Net income 194 189 Other data: Average number of common shares outstanding 41.4 46.8 Total dividends paid $ 51.0 $ 52.4 If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of the stock? Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. Calculate the dividend payout ratio for 2020.
Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 679 $ 898 $ 743 Other assets 2,414 1,921 1,720 Total assets $ 3,093 $ 2,819 $ 2,463 Current liabilities $ 563 $ 804 $ 711 Long-term liabilities 1,522 988 833 Stockholders’ equity 1,008 1,027 919 Total liabilities and stockholders' equity $ 3,093 $ 2,819 $ 2,463 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $ 3,051 $ 2,914 Operating income 297 311 Interest expense 85 66 Net income 194 189 Other data: Average number of common shares outstanding 41.4 46.8 Total dividends paid $ 51.0 $ 52.4 If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of the stock? Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. Calculate the dividend payout ratio for 2020.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:
WIPER INC. | |||||||||
Condensed Balance Sheets | |||||||||
December 31, 2020, 2019, 2018 | |||||||||
(in millions) | |||||||||
2020 | 2019 | 2018 | |||||||
Current assets | $ | 679 | $ | 898 | $ | 743 | |||
Other assets | 2,414 | 1,921 | 1,720 | ||||||
Total assets | $ | 3,093 | $ | 2,819 | $ | 2,463 | |||
Current liabilities | $ | 563 | $ | 804 | $ | 711 | |||
Long-term liabilities | 1,522 | 988 | 833 | ||||||
1,008 | 1,027 | 919 | |||||||
Total liabilities and stockholders' equity | $ | 3,093 | $ | 2,819 | $ | 2,463 | |||
WIPER INC. | ||||||
Selected Income Statement and Other Data | ||||||
For the year Ended December 31, 2020 and 2019 | ||||||
(in millions) | ||||||
2020 | 2019 | |||||
Income statement data: | ||||||
Sales | $ | 3,051 | $ | 2,914 | ||
Operating income | 297 | 311 | ||||
Interest expense | 85 | 66 | ||||
Net income | 194 | 189 | ||||
Other data: | ||||||
Average number of common shares outstanding | 41.4 | 46.8 | ||||
Total dividends paid | $ | 51.0 | $ | 52.4 | ||
- If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of the stock?
- Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
- Calculate the dividend payout ratio for 2020.
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