Quiz 1: Fin 819-02
DIVIDEND PAYOUT RATIO AND RETENTION RATIO. Dividend policy decision refers to the decision to pay out earnings or to retain them for reinvestment in the firm Dividend refers to the portion of net income paid out to the shareholders. The percentage of earnings paid out in form of cash dividend is known as dividend payout ratio. Dividend payout ratio can be calculated as under. Divide Payout ... ................
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