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Dividend per share is Rs 3 and earnings per share is Rs 8. What is the payout ratio?

A26.7%
B33.3%
C37.5%
D62.5%
Answer & Solution
Correct answer: C. 37.5%
Payout ratio is dividend per share divided by earnings per share, so 3 over 8 is 37.5 percent.
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