If a company earns Rs 5,00,000 as the distributable profits and pays the dividends of Rs 2,00,000 out of that, what
is the dividend pay-out ratio?
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Answer:
The dividend payout ratio can be calculated as the yearly dividend per share divided by the earnings per share, or equivalently, the dividends divided by net income (as shown below).
Explanation:
500000/2000000
5/2 here is ur answer
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