A Payout Ratio of 35 Percent for a Company Indicates

question 115

Multiple Choice

A payout ratio of 35 percent for a company indicates that:

• A)35 percent of dividends are plowed back for growth.
• B)65 percent of dividends are plowed back for growth.
• C)65 percent of earnings are paid out as dividends.
• D)35 percent of earnings are paid out as dividends.

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Definitions:

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