Respuesta :

If acme motor company earned $10.00 per common share in 2019, its dividend payout ratio was 25%.

What is Dividend?

  • The transfer of company profits to qualified shareholders is known as a dividend.
  • The directors of a firm decide on dividend distributions and quantities.
  • The dividend yield is the dividend per share, calculated as a proportion of the share price of a corporation.
  • Many businesses choose to keep their earnings in order to reinvest them back into the business rather than paying dividends.
  • Simply put, a dividend is a portion of the company's profits. Profit is the amount that remains after a corporation has paid off all of its debts, including taxes. There can be no dividend payments if there is no profit.
  • If dividends are paid, the corporation will announce the amount and pay all stockholders who owned the shares as of the ex-date on the next payment date. Investors who receive dividends have the option of keeping the money in cash or reinvesting it to buy more shares.

$2.50 of Dividends paid in 2019 divided by $10.00 Earnings per Common Share = 25% Dividend Payout Ratio.

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