The dividend payout ratio relates the amount of dividends paid to the:
A)period's earnings
B)period's gross margin
C)net sales for the period
D)average assets for the period

Question

Quizplus · Accepted Answer

The dividend payout ratio compares the amount of dividends paid out to the earnings for the same period. It is calculated by dividing dividends by earnings. Therefore, choice A (period's earnings) is the correct option.

The Dividend Payout Ratio Relates the Amount of Dividends Paid