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Respond to...  For virtual hoardholders of a assemblage, it is weighty to foremost interpret the assemblage of concern preceding to endowing in it. One monstrosity that should be assessed is the deed of the assemblage. Stockholders should pay engagementinate notice to the dividend payout harmony and the give-back on equity harmony but they should merely parallel a assemblage’s dividend payout harmony delay harmonious companies to get an respectful interpreting. As per Kimmel, Weygandt, and Kieso (2019), the dividend payout harmony “measures the percentage of rights a assemblage distributes in the constitute of capital dividends in vile hoardholders”. The dividend payout harmony can be used to authenticate the party of a assemblage’s annual rights per distribute that is being hired in the constitute of capital dividends per distribute. In appoint to number the payout harmony, completion capital dividends declared to vile distributeholders is disconnected by net pay. Companies try to set their dividend rebuke at a sustainable roll and most vilely, companies are considered firmly-fixed if they pay out hither than 50% of its rights in the constitute of dividends (Hanlon & Hoopes, 2014). Firmly-fixed companies feel the virtual to construct rights balance the covet engagement. On the other agency, companies that pay out past than 50% likely won’t construct dividend payouts as fur as companies delay inferior dividend payout harmonys. Furthermore, companies delay excellent dividend payout harmonys could feel difficulties maintaining dividends balance the covet engagement. The most new basis from Colgate Palmolive Co., per June 30 2019 Quarter II, indicates an rights per distribute of $0.68, dividends of $.047, and a payout harmony of 68.97%. Based on these statistics, I would not endow in Colgate accordingly the payout harmony is too excellent. I don’t feel belief that the assemblage would perconstitute courteous balance the covet engagement. References: Colgate (Links to an apparent condition.). (www.colgate.com) Hanlon, M. & Hoopes, J. L. (2014). What Do Firms Do When Dividend Tax Rates Change? An Examination of Alternative Payout Responses to Dividend Tax Rebuke Changes. Journal of Financial Economics, 114(1), 105-124. https://doi.org/10.2139/ssrn.2065628 Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2019). Financial accounting: Tools for employment determination making (8th ed.). Retrieved from https://www.vitalsource.com Respond to...  I reveiwd Colgate's  Annual Report off their webcondition to number the dividend payouts harmony and give-back on vile hoardholders' equity. Dividend payout harmony Cash dividends declared on vile hoard/net pay. {$1.339 (million)}/$1.384 9million)=97% Return on vile hoardholders' equity (Net pay-Preferred dividends)/(Average vile hoardholders's equity) ($1.384 (million)=$0) / { ((299) + 1.145)/2} - $1.384 (million) / 423=3.27-327% These harmonys method up delay the statements on Colgate's website. : "Colgate Palmolive has hired incessant dividends on its vile hoard gone 1895 and had increased payments to vile distributeholders perfect year for 54 years."  Also the completion distributeholders give-back in the definite 20 years us +1168%. The give-back on vile hoardholders' equity utter you how frequent dollars of net pay feel been earned for each dollar that was endowed by vile hoardholders. Delay a give-back of 32% that media the endowors are past than tripling their capital.