The following financial information is available for Flint Corporation. (in millions) 2017 2016
Average common stockholders’ equity $2,825 $2,925
Dividends declared for common stockholders 335 630
Dividends declared for preferred stockholders 45 45
Net income 605 685

Required:
Calculate the payout ratio and return on common stockholders’ equity ratio for 2017 and 2016.

By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology. however, the costs of producing electric autos may increase because of higher costs for inputs (e.g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i.e., learning by doing). what is the expected impact of these changes on the equilibrium price and quantity for electric autos?