The Dividend Payout Ratio Relates the Amount of Dividends Paid

question 92

Multiple Choice

The dividend payout ratio relates the amount of dividends paid to the:

• A)period's earnings
• B)period's gross margin
• C)net sales for the period
• D)average assets for the period

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Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price or other factors.

Long-run Profit

The amount of financial gain achieved over a longer period, taking into account all fixed and variable costs.

Market Demand Curve

Curve relating the quantity of a good that all consumers in a market will buy to its price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing to purchase at various prices.