Purchase Solution

Determining the Dividend Payout Ratio

Not what you're looking for?

Ask Custom Question

Last year Quality's earnings per share were $2.34 and it paid a dividend of $1.10.

What was Quality's dividend payout ratio?

Purchase this Solution
Solution Summary

Last year Quality's earnings per share were $2.34 and it paid a dividend of $1.10. This solution calculates the Quality's dividend payout ratio.

Solution Preview

Please refer to attached file response.

Your question is this: Last year Quality's earnings per share were $2.34 and it paid a dividend of $1.10. What was Quality's dividend payout ratio?
A dividend is a cash payment from profits announced by a company's board of directors and distributed among ...

Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Which the following are factors in determining a company's c

    413410 Which the following are factors in determining a company's credit rating?

  • Payout ratio

    Please see the attachment. The solution explains how to calculate the payout ratio using residual dividend model.

  • Determining Sustainable Growth Rate

    236261 Determining Sustainable Growth Rate A firm has a total asset turnover of 2, a net profit margin of 5%, and a debt ratio of 50%. If the firm has a dividend payout ratio of 20%, calculate its sustainable growth rate.

  • Dividend policy

    Managers target a long-term payout ratio when determining dividend policy. This target payout ratio is low for risky companies. The rate at which the risky companies move towards the target payout ratio over the years is a gradual process.

  • Finance/Accounting Problems: Dividend Policy

    This target payout ratio is low for risky companies. The rate at which the risky companies move towards the target payout ratio over the years is a gradual process.

  • Determining a Dividend Payout

    The company's cost of capital is 12 percent. a. How much will the company pay out in dividends if it follows a residual dividend policy? b. What is the company's dividend payout ratio if it pays the dividends calculated above? c.

  • Stock Value Based on Equity, Payout Ratio and Risk Free Rate

    379315 Stock Value Based on Equity, Payout Ratio and Risk Free Rate DK Corp. pays no dividends for 2 years. At the end of third year it pays a $2.00 dividend and then establishes a constant dividend growth rate.

  • Dividend Policy and Price-Earnings Ratio

    Managers target a long-term payout ratio when determining dividend policy. This target payout ratio is low for risky companies. The rate at which the risky companies move towards the target payout ratio over the years is a gradual process.

  • Financing and dividends

    The dividend payout ratio gauges the portion of current earnings being paid out in dividends. A high or low dividend payout ratio is neither good nor bad taken by itself. Firm can pay dividends to give positive signal to the investors.

View More Related Solutions