In 2022, Voyage Company had earnings per share of $45 and paid a dividend of $15 per share.The dividend yield was 8%.The book value per share is $100.The dividend payout ratio was:
A)4.167
B)3.0000
C)0.3333
D)0.1500

Question

Quizplus · Accepted Answer

Dividend yield = (dividend per share / market price per share) * 100
8% = (15 / market price per share) * 100
Market price per share = 187.50

Dividend payout ratio = dividend per share / earnings per share
= 15 / 45
= 0.3333

In 2022, Voyage Company Had Earnings Per Share of $45