Unformatted text preview: • For “Net income” use income before irregular items. • Pfizer has both common and preferred equity. For ROCE, the denominator is common equity. “If it ain’t preferred, it’s common,” so simply subtract the preferred amount from total SE to get common SE. • For free cash flow, use total dividends paid per the SCF. • For ROCE use preferred dividends declared per the statement of SE (see the retained earnings column). • For the dividend payout rate, use common dividends declared per stmt of SE. • Year-end per share stock prices were $23.32 (2005) and $26.89 (2004). Common dividends per share were $0.76 (2005) and $0.68 (2004). • Use year-end amounts wherever a formula calls for an average. • Use total sales for credit sales. • Express all ratios as demonstrated in the text and in lecture. CH12-STATEMENT OF CASH FLOWS TEXT P630 PROBLEMS 12-7A,8-A...
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- Winter '07
- Income Statement, Generally Accepted Accounting Principles