View Full Version : Calculating Payout Ratio
zetablue1
Sep 8, 2009, 07:10 PM
I have been given an income statement and balance sheet to calculate the payout ratio. I know the payout ratio formula is cash dividends divided by net income. But I don't know the dividend amounts. Usually I would get the dividends from the retained earnings statement but I don't have one. How would I calculate dividends with the information I have been given?
Thanks in advance for your help!
ROLCAM
Sep 8, 2009, 11:07 PM
To bake a cake , you must have the ingredients.
It would appear that in this instance you have NOT got the ingedients.
SO, you cannot get there.
morgaine300
Sep 9, 2009, 12:43 AM
Is this a real company?
zetablue1
Sep 9, 2009, 08:32 PM
Is this a real company?
No, trying to make sense of a homework question. I realized, after posting this question, that I have a comparative income statement and balance sheet with figures from 2008 and 2009 and I can calculate using retained earnings.
Also thank you for your help on a couple of questions prior to this, your feedback helped me greatly!
morgaine300
Sep 10, 2009, 01:38 AM
You're welcome. :-)