# GENERAL KNOWLEDGE

## GK

### ACCOUNTING

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Dividend Payout Ratio is
 A DPS B PAT Capital C Pref. Dividend D Pref. Dividend
Explanation:

Detailed explanation-1: -Alternatively, DPR is also computed on the basis of per-share. In that case, both the dividend paid out and net earnings would need to be divided by the number of outstanding shares. Ergo, DPR = DPS / EPS; where DPS represents dividend per share and EPS refers to earnings per share.

Detailed explanation-2: -Dividends Per Share (DPS): An Overview. Earnings per share (EPS) and dividends per share (DPS) are both reflections of a company’s profitability, but that’s where any similarities end. Earnings per share is a ratio that gauges how profitable a company is per share of its stock.

Detailed explanation-3: -The dividend payout ratio shows how much of a company’s earnings after tax (EAT) are paid to shareholders. It is calculated by dividing dividends paid by earnings after tax and multiplying the result by 100.

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