The best dividend payout ratio:
A)approximates 50%.
B)continues at the same level as was historically paid.
C)is similar to the industry average.
D)is higher than that of competitors.
E)does not follow any rule of thumb for dividend payout.

Question

Quizplus · Accepted Answer

The best dividend payout ratio does not follow any rule of thumb because it varies depending on the company's growth prospects, financial health, industry standards, and strategic goals. Each company may have a different optimal payout ratio based on its unique circumstances.

The Best Dividend Payout Ratio