The payout ratio is computed by dividing
A) total cash dividends paid by retained earnings.
B) dividends paid per share by net income.
C) total cash dividends paid by net income.
D) dividends paid per share by year-end stock price.

Question

Quizplus · Accepted Answer

The payout ratio is calculated by dividing total cash dividends paid by net income, indicating the proportion of earnings paid out as dividends to shareholders.

The Payout Ratio Is Computed by Dividing