Choc-lattes Corp.earned $5.00 per share in 2006,and paid a dividend of $2.00 per share.If it earns $5.50 in 2007 and maintains its $2.00 dividend,its payout ratio will be

Name: Choc-lattes Corp.earned $5.00 per share in 2006,and paid a dividend of $2.00 per share.If it earns $5.50 in 2007 and maintains its $2.00 dividend,its payout ratio will be
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The payout ratio is calculated as the dividend per share divided by earnings per share. In 2007, the payout ratio is $2.00 / $5.50 = 0.3636, or 36%.

Choc-Lattes Corp