Chapter4: Preparing And Using Financial Statements
Section: Chapter Questions
Problem 8DQ
Related questions
Question
Define Dividend payout ratio
Expert Solution
Step 1
Formula to calculate dividend payout ratio -
Dividend Payout Ratio = Dividends Paid / Net Income
or
Dividend Pay out Ratio = Dividends Per Share / Earnings Per Share
or
Dividend Pay out Ratio = 1- Retention Ratio
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