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Question

Dividend Payout Ratio is equal to ________.

A
PAT Capital
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B
DPS ÷ EPS
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C
Preferred dividend ÷ PAT
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D
Preferred dividend ÷ Equity Dividend
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Solution

The correct option is B DPS ÷ EPS
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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