FLopez Project Assignment Week 5-1

# FLopez Project Assignment Week 5-1 - 2007...

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Page # a. The stated value of P&G's preferred stock is \$1 per share 219 b. The stated value of P&G's common stock is \$1 per share. 219 c. 219 d. 220 e. 221 f. Return on Common Stock Equity given: net earnings = 10,340 preferred stock = 161 common stockholder's equity = total shareholder's equity less preferred stock commo stockholder's equity = 2007 = 66,760 less 1,406 = 65,354 commo stockholder's equity = 2006 = 62,908 less 1,451 = 61,457 2007: 16.05% [(\$10,340-\$161)/((\$65,354+\$61,457) / 2)] given: net earnings = 8,684 preferred stock = 148 common stockholder's equity = total shareholder's equity less preferred stock commo stockholder's equity = 2006 = 62,908 less 1,451 = 61,457 commo stockholder's equity = 2005 = 17,477 less 1,483 = 15,994 2006: 22.04% [(\$8,684-\$148)/((\$61,457+\$15,994) / 2)]] g. Payout ratio: given: cash dividend for 2007 = 4,048 net earnings = 10,340 preferred stock = 161 Payout ratio = cash dividend divided by (net income less preferred dividends)
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Unformatted text preview: 2007: 39.77% [\$4,048/(\$10,340-\$161)] given: cash dividend for 2006 = 3,555 net earnings = 8,684 preferred stock = 148 Payout ratio = cash dividend divided by (net income less preferred dividends) 2006: 41.65% [\$3,555/(\$8,684-\$148)] h. Market price range of P&G's common stock during quarter ended June 30,2007 High: \$64.75 Low: \$60.76 price range was taken from the following website: http://thomson.mobular.net/thomson/7/2481/2801/ page 72 Shareholder Information On June 30, 2007, the percentage of P&G's authorized common stock is 39.9% (3,98.7 million shares of common stock issued) P&G's shares of common stock oustanding at June 30, 2007 was 3,131.9 million. At June 30,2006, P&G's shares of common stock outstanding was 3,178.8 million The effect of cash dividends on P&G's stockholders' equity is the decrease in the retained earnings by \$4,209,000 (including both common & preferred dividends)...
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