A company has a net profit after taxes of Rs 1,20,000 and pays a cash dividend of Rs 48000 on its 36000 outstanding shares at a time when the share is selling at Rs12. What is the dividend payout percentage? * 54% O 45% O 40% O 42%

A company has a net profit after taxes of Rs 1,20,000 and pays a cash dividend of Rs 48000 on its 36000 outstanding shares at a time when the share is selling at Rs12. What is the dividend payout percentage? * 54% O 45% O 40% O 42%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 1P

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Question

A company has a net profit after taxes of Rs 1,20,000 and pays a cash dividend
of Rs 48000 on its 36000 outstanding shares at a time when the share is selling
at Rs12. What is the dividend payout percentage? *
54%
45%
O 40%
O 42%

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