A corporation's dividend payout ratio is the percentage of _____ paid out as dividends.

Question

Quizplus · Accepted Answer

Dividend payout ratio is calculated by dividing dividends paid out by earnings. Therefore, the correct answer is B, which states that the dividend payout ratio is the percentage of earnings paid out as dividends. The other options are not correct because the dividend payout ratio is not calculated based on cash, earnings before interest and taxes, or retained earnings alone.

A Corporation's Dividend Payout Ratio Is the Percentage of _____