The proportion of net income after taxes that is paid as dividends is the firm's
A) dividend yield.
B) price/earnings ratio.
C) payout ratio.
D) income distribution.

Question

Quizplus · Accepted Answer

The payout ratio is the proportion of net income after taxes that a firm pays out as dividends to its shareholders. It is a financial metric used to evaluate the percentage of earnings distributed in the form of dividends.

The Proportion of Net Income After Taxes That Is Paid