MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Dividend Decision involves the determination of
A
Liquidity Ratio and Solvency Ratio
B
Retention Ratio and Payout Ratio
C
Profitability Ratio and Turn Over Ratio
D
Activity Ratio and Liquidity Ratio
Explanation: 

Detailed explanation-1: -The dividend payout ratio evaluates the percentage of profits earned that a company pays out to its shareholders, while the retention ratio represents the percentage of profits earned that are retained by or reinvested in the company.

Detailed explanation-2: -The Dividend Payout Ratio (DPR) is the amount of dividends paid to shareholders in relation to the total amount of net income the company generates. In other words, the dividend payout ratio measures the percentage of net income that is distributed to shareholders in the form of dividends.

Detailed explanation-3: -In addition, the key significant determinants of dividend payout decision in the period covered by our study include free cash flow, growth, liquidity, profitability and size. These important research results are confirmed by other studies in the field. They are therefore essential for determining dividend policies.

Detailed explanation-4: -Dividend payout ratio is a proportion of dividend per share and earning per share. It signifies that how much is the dividend paid to the shareholders against the earning per share. Was this answer helpful?

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