The pay-out ratio is calculated by dividing:
A) Earnings per share by the dividend per ordinary share and multiplying by 100%.
B) Dividend per ordinary share by the current market price of one ordinary share and multiplying by 100%.
C) Dividend per ordinary share by the earnings per share and multiplying by 100%.
D) (Profit after tax and after preference dividends) by total ordinary dividends and multiplying by 100%.
Correct Answer:
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