The Payout Ratio Is Computed by Dividing

question 32

Multiple Choice

The payout ratio is computed by dividing

• A) total cash dividends paid by retained earnings.
• B) dividends paid per share by net income.
• C) total cash dividends paid by net income.
• D) dividends paid per share by year-end stock price.

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Definitions:

Cause Stress

Factors or situations that induce a physical or emotional strain or tension in individuals.

Locus of Control

An individual's belief about the extent to which their actions can influence the events and outcomes in their lives.

Broad Preferences

General or overarching choices or inclinations that an individual or group may have.

Geert Hofstede

A Dutch social psychologist who is known for his research on cross-cultural groups and organizations, particularly for developing cultural dimensions theory.