The payout ratio is calculated by dividing Select answer from the options below - (I selected "b")came back as incorrect a. dividends per share by earnings per share and dividing cash dividendsby net income less preferred dividends. b. dividends per share by earnings per share. c. cashdividends by net income less preferred dividends. d. cash dividends by the market price per share.

The ratio is the technique used by the prospective investor or an individual or strategist to read…

Answered: The payout ratio is calculated by…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

When computing diluted earnings per share, which of the following will not be considered in the calculation? O Dividends paid on common stock. O The weighted average common shares. O The effect of stock splits. O The number of convertible bonds
The tendency of the return on stockholders' equity to vary disproportionately from the return on total assets is because ofa. leverageb. solvencyc. Yieldd. quick assets
If common stock is issued for an amount greater than par value, the excess goes to what account? a. Legal Capital b. Retained Earnings C. Cash d. Paid-in-Capital in Exess of Par Value A Moving to the next question prevents changes to this answer. & % #3 8.
Only need last 2 parts of the problem.
8. How would total stockholders' equity be effected by the declaration of each of the following? Stock dividend a. No effect b. Decrease c. Decrease d. No effect Stock Split Increase Decrease No effect No effect
In computing Earnings per share when there are preference shares, the total net income after tax is reduced by the dividend in arrears of cumulative preference shares. a. TRUE b. FALSE
In the Gordon Growth (dividend discount) Model, the growth rate is assumed to be the required return on equity. a. proportional to O b. Blank O c. equal to O d. greater than O e. less than
Today's dividend yield for standard supply is computed by utilizing the formula C = A/S where A is the most recent annual dividend (in dollars) and S is the current share expense (in dollars). Encounter the function C's domain.
Define each of the following terms:a. Target payout ratio; optimal dividend policyb. Dividend irrelevance theory; bird-in-the-hand fallacyc. Information content (signaling) hypothesis; clienteles; clientele effectd. Catering theory; residual dividend modele. Low-regular-dividend-plus-extrasf. Declaration date; holder-of-record date; ex-dividend date; payment dateg. Dividend reinvestment plan (DRIP)h. Stock split; stock dividendi. Stock repurchase
Please also explain why other options are incorrect
The amount of income earned per share of outstanding common stock is known as: Multiple Choice Return on assets per share. Restricted retained earnings per share. Dividends per share. Earnings per share. Continuing operations per share.
(please correct answer and question information)

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