If Sulzer Has 10 Million Shares Outstanding, Operating Income (EBIT)

question 5

Multiple Choice

If Sulzer has 10 million shares outstanding, operating income (EBIT) of $42.4 million, and interest expenses of $6.8 million, what is Sulzer's dividend payout ratio, given that the dividend per share is $0.80? Assume a marginal tax rate of 40%.

• A) 56.3%
• B) 31.5%
• C) 50.4%
• D) 37.5%

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