Q419
In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as
A.
payout ratio
AnswerB.
payback ratio
C.
growth retention ratio
D.
present value of ratio
Answer: Option A
Solution
Answer: Option A
Solution:
In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as payout ratio. The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company.