The dividend-payout ratio is equal to __________.
- dividends per share divided by current price per share.
- dividends per share divided by par value per share
- dividends per share divided by earnings per share
- the dividend yield plus the capital gains yield
Explanation
The dividend-payout ratio is equal to dividends per share divided by earnings per share.
Dividend payout ratio is a proportion of dividend per share and earning per share.
It signifies that how much is the dividend paid to the shareholders against the earning per share.
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