管理会计 chap016.ppt

The dividend payout ratio is computed as shown. Investors who seek market price growth would like this ratio to be small, whereas investors who seek dividends prefer it to be large. Norton Corporation’s dividend payout ratio is 82.6 percent. 16-* The dividend yield ratio is computed as shown. This ratio measures the rate of return (in the form of cash dividends only) that would be earned by an investor who buys common stock at the current market price. Norton Corporation’s dividend yield ratio is 10 percent. 16-* The return on total assets is computed as shown. Adding interest expense back to net income enables the return on assets to be compared for companies with different amounts of debt or over time for a single company that has changed its mix of debt and equity. Norton Corporation’s return on assets is 18.19 percent. 16-* The return on common stockholder’s equity is computed as shown. This measure indicates how well the company used the owners’ investments to earn net income. Norton Corporation’s return on common stockholder’s equity is 25.91 percent for the most recent year. 16-* Financial leverage results from the difference between the rate of return the company earns on investments in its own assets and the rate of return that the company must pay its creditors. Positive financial leverage exists if the rate of return on the company’s assets exceeds the rate of return the company pays its creditors. In this case, having some debt in a company’s capital structure can benefit its shareholders. Negative financial leverage exists if the rate of return on the company’s assets is less than the rate of return the company pays its creditors. In this case, the common stockholder suffers by having debt in the capital structure. 16-* Which of the following statements is true? 16-* The answer is A. Negative financial leverage is when the fixed return to a company’s creditors and preferred stockholders is greater than the return on total assets.