Why do you think home depot is paying out

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Home Depot, Inc.’ s income statements for 2007, 2008, and 2009 show basic earnings per share of $ 2.38, $ 1.34, and $ 1.58, respectively. Diluted earnings per share figures are slightly lower than these numbers, indicating the impact of potential capital stock activity that could reduce earnings per share for current stockholders. The company paid cash dividends of $ 0.90 per share in each of 2007, 2008, and 2009.

a. Why do you think Home Depot is paying out only about 38 percent to 67 percent of its net income to stockholders in the form of cash dividends?

Reference no: EM13140826

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