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9 May, 03:38

Assume Colgate-Palmolive reports the following dollar balances in its retained earnings account. ($ millions) 2015 2014Retained earnings $18,528 $18,388

During 2015, Colgate-Palmolive reported net income of $2,050 million.

a. What amount of dividends, if any, did Colgate-Palmolive pay to its stockholders in 2015?

b. What percent of its net income did Colgate-Palmolive pay out as dividends in 2015? Round to the nearest whole percentage.

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  1. 9 May, 05:56
    0
    a) Dividend: $ 1,910

    b) Dividend pay out ratio: 93%

    Explanation:

    a) Dividend = Opening retained earnings + net income - Closing retained earnings

    Dividend = 18,388 + 2,050 - 18,528

    Dividend = 1,910

    b) Dividend pay out percent: Dividend / Net Income

    Dividend pay out percent: 1,910 / 2,050 = 93%
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Home » Business » Assume Colgate-Palmolive reports the following dollar balances in its retained earnings account. ($ millions) 2015 2014Retained earnings $18,528 $18,388 During 2015, Colgate-Palmolive reported net income of $2,050 million. a.
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