Maneesh 30 April 2020 at 16:05 PM

Joyer Company paid out one-half of last year's earnings in dividends. This year, Baylor's earnings increased by 20%,
and the amount of its dividends increased by 15%. Joyer's dividend payout ratio for the current year is

A) 47.9%
B)57.5%
C)50 %
D)78%

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FACULTY 11 May 2020 at 12:40 PM

Option A
Assume that last year
Earning= 100
dividend = 50

If earning incresed by 20% and payout incresed by 15%
Then earnings will be	120
(100 + 100 *20/100)
Pay out =	57.5
(50 + 50* 15/100)

Then pay out ratio (57.5 / 120)	47.91666667
(Pay out / dividend)