With a 50% debt ratio and 2,000,000 worth of capital, the company posted dividends amounting to one fifth of retained earnings. Retained earnings is one fourth of total assets. EBIT is 1,000,000 and tax is at 20%. How much is the payout ratio of the company? Two decimal points, decimal or percent.

With a 50% debt ratio and 2,000,000 worth of capital, the company posted dividends amounting to one fifth of retained earnings. Retained earnings is one fourth of total assets. EBIT is 1,000,000 and tax is at 20%. How much is the payout ratio of the company? Two decimal points, decimal or percent.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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