Barber Industries reported net income of $32,000, earnings per share of $1.20 and paid dividends of $0.30 per share.What is the dividend payout ratio?
A)400%
B)25%
C)$4
D)$1.50

Question

Quizplus · Accepted Answer

Dividend payout ratio is the proportion of earnings paid out as dividends to shareholders. It is calculated by dividing dividends per share by earnings per share. In this case, dividend per share is $0.30 and earnings per share is $1.20. Dividend payout ratio = (0.3/1.2) x 100% = 25%.

Barber Industries Reported Net Income of $32,000, Earnings Per Share