Provide this question solution general finance Shanghai Ltd has declared an annual dividend of go cents per share.Their after-tax profits for the year were R60,000 and they have12,000 shares in issue.1. Calculate the profit per share.2. Determine the payout ratio.

Step 1: Define Payout RatioThe payout ratio depicts the overall portion of earnings that a firm has…

Answered: Shanghai Ltd has declared an annual…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 1P

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Shanghai Ltd has declared an annual dividend of go cents per share. Their after-tax profits for the year were R60,000 and they have 12,000 shares in issue. 1. Calculate the profit per share. 2. Determine the payout ratio.