The payout ratio is determined by dividing cash dividends paid to ordinary shareholders by net income available to ordinary shareholders.

Name: The payout ratio is determined by dividing cash dividends paid to ordinary shareholders by net income available to ordinary shareholders.
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Question

Quizplus · Accepted Answer

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

The Payout Ratio Is Determined by Dividing Cash Dividends Paid