Vidyalelo
Management · Q419

Financial Management

Graduate and Post Graduate · Management · question 419

Q419

In retention growth model, percent of net income firms usually pay out as shareholders dividends is classified as

A.
payout ratio
Answer
B.
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.