The following financial information is available for Walgreen Company.
|
(in millions) |
2007 |
2006 |
|
Average common stockholders’ equity |
$10,610.1 |
$9,502.8 |
|
Dividends declared for common stockholders |
326.2 |
275.2 |
|
Dividends declared for preferred stockholders |
0 |
0 |
|
Net income |
2,041.3 |
1,750.6 |
Instructions
Calculate the payout ratio and return on common stockholders’ equity ratio for 2007 and 2006. Comment on your findings.