A dividend payout ratio of 75% would be typical of
A) a company whose earnings were also growing at about 75% per year.
B) a newly listed company trying to attract investors.
C) a firm in the rapid growth stage.
D) a profitable firm with limited growth prospects.

Question

Quizplus · Accepted Answer

A dividend payout ratio of 75% is typically indicative of a mature, profitable firm that has limited opportunities for reinvestment in growth. Such companies often return a larger portion of their earnings to shareholders in the form of dividends.

A Dividend Payout Ratio of 75% Would Be Typical of