Jesson Corporation just declared a $0.52 dividend per share based on EPS of $6.50. Calculate the retention ratio

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Quizplus · Accepted Answer

The retention ratio is calculated as the portion of earnings not paid out as dividends, which is (1 - Dividend Payout Ratio). The Dividend Payout Ratio is the dividends per share divided by earnings per share (EPS). Here, it's $0.52 / $6.50 = 0.08 or 8%. Therefore, the retention ratio is 1 - 0.08 = 0.92 or 92%.

Jesson Corporation Just Declared a $0