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Ratio Analysis

Consider the following information taken from the stockholders' equity section:

	(dollar amount in thousands)
	2024			2023
Preferred stock	$1,000			$1,000
Common stock, 334,328,193 and 330,961,869 shares issued in 2024 and 2023, respectively	3,343			3,310
Additional paid-in capital - common stock	766,382			596,239
Retained earnings	5,460,629			4,630,390
Accumulated other comprehensive (loss) income	(206,662)			58,653
Treasury stock (76,275,837 and 56,960,213 shares in 2024 and 2023, respectively) at cost	(3,267,955)			(2,205,987)
Total stockholders' equity	$2,756,737			$3,083,605

Additional Information (all numbers in thousands other than per-share information):	2024
Weighted average common shares outstanding	264,453
Price per share at year end	$70.47
Net income	$1,123,153
Preferred dividends	$80,000
Common dividends	$212,914
Common dividends per share	$0.84
Stock repurchases	$1,061,968

Required:

1. Calculate the following for 2024. Round your answers to two decimal places.

Stockholder Payout:
Dividend yield	fill in the blank 1	%
Dividend payout	fill in the blank 2	%
Total payout	fill in the blank 3	%
Stock repurchase payout	fill in the blank 4	%
Stockholder Profitability:
Return on common equity	fill in the blank 5	%
EPS	$fill in the blank 6	per share

2. Conceptual Connection: Assume 2023 ratios were:

Stockholder Payout	Stockholder Profitability
Dividend yield: 0.85%	Return on common equity: 34.26%
Dividend payout: 9.80%	EPS: $3.51
Total payout: 70.00%
Stock repurchase payout: 60.20%

and the current year industry averages are:

Stockholder Payout	Stockholder Profitability
Dividend yield: 0.76%	Return on common equity: 23.81%
Dividend payout: 12.35%	EPS: $1.23
Total payout: 48.37%
Stock repurchase payout: 36.02%

How do you interpret the company's payout and profitability performance?

In 2024,

only the stockholder profitability ratio isonly the stockholder payout ratio isboth the stockholder payout and stockholder profitability ratios are

above the industry averages. Overall, this could indicate a

goodbad

investment choice.

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