Net income does not appear in the numerator of the
A) profit margin.
B) return on assets.
C) return on ordinary shareholders' equity.
D) payout ratio.

Name: Net income does not appear in the numerator of the A) profit margin. B) return on assets. C) return on ordinary shareholders' equity. D) payout ratio.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The payout ratio is calculated by dividing dividends paid to shareholders by net income, therefore net income does not appear in the numerator of the payout ratio.

Net Income Does Not Appear in the Numerator of the