This is the proportion of each dollar of earnings that is paid to shareholders as a dividend; equals one minus the retention rate.
A) Internal rate of return
B) Internal growth rate
C) Retention rate
D) Dividend payout ratio

Question

Quizplus · Accepted Answer

The dividend payout ratio is the proportion of earnings paid out as dividends. It is calculated by dividing dividends by net income. The retention rate is the proportion of earnings that are retained in the company for growth purposes, and is equal to 1 minus the dividend payout ratio. The internal rate of return and internal growth rate are measures of a company's potential for growth and profitability, and are not directly related to dividend payouts.

This Is the Proportion of Each Dollar of Earnings That