What Kind of Information Does the Dividend Payout Ratio Provide

question 59

Multiple Choice

What kind of information does the dividend payout ratio provide?

• A)How much profit each shareholder makes when he sells his shares
• B)What proportion of a share's earnings are paid out in dividends
• C)How much the dividend is in proportion to the share's market price
• D)How much dividend revenue a company earns on its short-term investments

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Definitions:

Manipulated

Altered, controlled, or handled skillfully, often with the implication of unfairness or deceit.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Placebo

A harmless pill, medicine, or procedure prescribed more for the psychological benefit to the patient than for any physiological effect.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.