The following financial information is available for Sara Lee Corporation.
|
(in millions) |
2007 |
2006 |
|
Average common stockholders’ equity |
$2,532 |
$2,591 |
|
Dividends declared for common stockholders |
298 |
611 |
|
Dividends declared for preferred stockholders |
0 |
0 |
|
Net income |
504 |
555 |
Instructions
Calculate the payout ratio and return on common stockholders’ equity ratio for 2007 and 2006. Comment on your findings.