Evaluate the significant trends you see for the company’s investor ratios by discussing how the payout of dividends affects retained earnings and whether this may affect financial leverage on the company’s earnings per share.

Accounting by Geoffrey

Investor analysis

After completing the calculations and comments in the FSAR Excel Spreadsheet, create a 250­500 word document analyzing the above profitability ratios from the perspective of an investor. Address the following in your response.

  1. Evaluate the significant trends you see for the company’s investor ratios by discussing how the payout of dividends affects retained earnings and whether this may affect financial leverage on the company’s earnings per share.
  2. From the perspective of management, discuss how you think the investor ratios calculated will affect external stakeholders behavior.