The Payout Ratio Can Be Calculated by

question 73

Multiple Choice

The payout ratio can be calculated by

• A) dividing cash dividends per share by earnings per share.
• B) dividing cash dividends by net income less preferred dividends.
• C) dividing cash dividends by market price per share.
• D) dividing net income by cash dividends per share.

---

Definitions:

Abdominal Aorta

The largest artery in the abdominal cavity, supplying blood to most of the abdominal organs.

Pneumothorax

A medical condition where air enters the space between the lung and chest wall, causing the lung to collapse.

Respiratory Distress Syndrome

A serious condition that affects the lungs, characterized by insufficient surfactant leading to lung collapse, common in premature infants.

Forced Expiration

The act of expelling air from the lungs with effort beyond normal exhalation, often used in respiratory function testing.