Financial Management

1:

Payout Ratio computed by

A.

(Dividend Per Share/Earnings Per Share )x 100

B.

Net Profit x/Dividend x 100

C.

Share/Net Profit x 100

D.

Earnings Per Share/Dividend Per Share x 100

 

Answer : A

Explanation :

The payout ratio is commonly calculated in one of two ways, either on a total basis, in which case the ratio is calculated by dividing the total amount of dividends paid out by the company's total net income, or on a per share basis where the formula used is dividends per share divided by earnings per share

Durga Prasad Mohapatra said: (9:26pm on Thursday 1st June 2017)
Ans is a) DPS/EPS*100Please describe how option b) was choosed

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Option: A

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