Info

$12,085.50

$3,087.20

25.54%

$16,454.09

$6,389.60

38.83%

As you can see, Disney paid out 25.54% of its aggregate earnings as dividends over this period.6 Over the same period, it returned 38.83% of its FCFE to its stockholders in the form of dividends and stock buybacks. Though the payout ratio gives us little information about the company, the cash returned as a percent of FCFE suggests that Disney accumulated cash during this period. Even if we ignore the cashflows generated by debt in estimating FCFE, Disney returned only 65.91% of its FCFE to its stockholders in the form of dividends and stock buybacks.

Table 11.9 shows dividend payout ratios and cash returned to stockholders as a percent of FCFE for Aracruz from 1998 to 2003.

Table 11.9: Aracruz - Dividends as Percentage of Earnings and Cash Returned as

Percent of FCFE

Table 11.9: Aracruz - Dividends as Percentage of Earnings and Cash Returned as

Year

Net Income

Dividends

Payout Ratio

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