The Wall Street Journal quotation for a company has the following values: Div: $1.12, PE:
18)3, Close: $37.22. Calculate the dividend pay out ratio for the company (Approximately).
A) 18%
B) 55%
C) 45%
D) None of the above

Question

Quizplus · Accepted Answer

Dividend payout ratio = Dividend per share / Earnings per share
Earnings per share = Close / PE = 37.22 / 18.3 = $2.03
Dividend payout ratio = 1.12 / 2.03 = 0.55 = 55% (approximately)

The Wall Street Journal Quotation for a Company Has the Following