Determining dividend payout

To find the dividend payout ratio, divide yearly dividend per share (the total amount per share paid out to investors during the year in dividends) by earnings per share Yearly dividend per share * Earnings per share Dividend payout ratio U** You can use numbers from Mattel's 2007 income statement to practice calculating the dividend payout ratio 0.75 (Dividends per share) * 1.54 (Diluted EPS) 48.7 (Dividend payout ratio) Mattel paid out 48.7 percent of its diluted earnings per share to...

Understanding Public Companies

A company that offers shares of stock on the open market is a public company. Public company owners don't make decisions based solely on their preferences they must always consider the opinions of the business's outside investors. Public company founders who don't keep their investors happy can find themselves out on the street and no longer involved in the company they started. Steve Jobs and Steve Wozniak, who started Apple Computer, found out the hard way that selling stock on the public...

Ten Financial Scandals That Rocked the World

Checking in with cheats Taking a look at foul play Finding fallout from faulty bookkeeping m'm sorry to have to say this, but the hard part of writing this chapter was narrowing the list down to ten. Too many candidates were competing for a spot on this list. Since 2000, more than 500 companies had to restate earnings after company executives, the board of directors, or the Securities and Exchange Commission (SEC) found problems with their financial statements. Because of these misstated...

Shielding Your Assets S and C Corporations

Company owners seeking the greatest level of protection may choose to incorporate their businesses. The courts have clearly determined that corporations are separate legal entities, and their owners are protected from claims filed against the corporation's activities. An owner shareholder in a corporation can't get sued or face collections because of actions taken by the corporation. The veil of protection makes a powerful case in favor of incorporating. However, the obligations that come with...