Define target payout ratio

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter6: Risk And Return
Section6.2: Measuring Risk For Discrete Distributions
Problem 3ST
icon
Related questions
Question

Define target payout ratio

Expert Solution
Step 1

SOLUTION:-

A target payout ratio is a degree of the proportion of a company's profits it would want to pay out to shareholders as dividends over the long-term. In simple words we can say that the amount of money a company want to have so that it can pay dividend to its shareholders. 

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Valuing Decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage