9th Edition

ISBN: 9781260998726

Author: SPICELAND

Publisher: MCG

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Textbook Question

Chapter 19, Problem 19.15BYP

Analysis Case 19–15

Kellogg’s EPS; PE ratio; dividend payout

• LO19–13

Real World Financials

While eating his Kellogg’s Frosted Flakes one January morning, Tony noticed the following article in his local paper: Kellogg Company Reports Fourth-Quarter and Full-Year Results and Provides Guidance For 2016 (in part)

BATTLE CREEK, Mich., Feb. 11, 2016 /PRNewswire/—Kellogg Company (NYSE: K) Reported full-year 2015 net earnings $614 million, or $1.72 per share.

As a shareholder, Tony is well aware that Kellogg pays a regular cash dividend of $0.50 per share quarterly. A quick click on a price quote service indicated that Kellogg’s shares closed at $72.27 on December 31.

Required:

1. Using the numbers provided, determine the price-earnings ratio for Kellogg Company for 2015. What information does this ratio impart?
2. What is the dividend payout ratio for Kellogg? What does it indicate?

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Chapter 19, Problem 19.13BYP

Chapter 19, Problem 19.16BYP

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Chapter 19 Solutions

INTERMEDIATE ACCOUNTING RMU 9TH EDITION

Ch. 19 - Prob. 19.1Q Ch. 19 - Prob. 19.2Q Ch. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6Q Ch. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9Q Ch. 19 - The treasury stock method is used to incorporate...

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