Foundations of Finance (9th Edition) (Pearson Series in Finance)
Foundations of Finance (9th Edition) (Pearson Series in Finance)
9th Edition
ISBN: 9780134083285
Author: Arthur J. Keown, John D. Martin, J. William Petty
Publisher: PEARSON
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Chapter 13, Problem 1RQ

What is meant by the term dividend payout ratio?

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Summary Introduction

To discuss: Meaning of dividend pay-out ratio.

Explanation of Solution

Dividend pay-out ratio shows that the amount paid in the form of dividends relative to the earnings that are available for common stockholders. In other words, it is nothing but, dividend per share divided by earnings per share.

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License