Investors who are interested in purchasing company shares for the income potential will be interested in a company with a high payout ratio.

Name: Investors who are interested in purchasing company shares for the income potential will be interested in a company with a high payout ratio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A high payout ratio indicates that a company is returning a large portion of its earnings to shareholders in the form of dividends, which is attractive to investors seeking income from their investments.

Investors Who Are Interested in Purchasing Company Shares for the Income