payout ratio

Mon, 04 May 2026 15:22:30 +0000

The payout ratio, also known as the dividend payout ratio, is the percentage of a company's earnings paid out to investors as cash dividends. A100M,Net income120M,50%,, A80M,payout ratio2/3,. It pays out 60 percent of earnings as cash dividends (payout ratio-0.50) Current book value per share is $52. Book value per share will grow as Q reinvests earnings Assume that the ROE and payout ratio. Answer to Problem 29P Due to an increase in profit margin ratio and dividend payout ratio, the company requires external finance of $10,360,000. An increase in profit margin ratio means that the funds of.