What kind of information does the dividend payout ratio provide?
A)How much profit each shareholder makes when he sells his shares
B)What proportion of a share's earnings are paid out in dividends
C)How much the dividend is in proportion to the share's market price
D)How much dividend revenue a company earns on its short-term investments

Question

Quizplus · Accepted Answer

The dividend payout ratio is the proportion of a company's earnings that is paid out to shareholders as dividends. It gives an indication of how much of a share's earnings are being distributed as dividends.

What Kind of Information Does the Dividend Payout Ratio Provide