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    zetablue1's Avatar
    zetablue1 Posts: 28, Reputation: 1
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    #1

    Sep 8, 2009, 07:10 PM
    Calculating Payout Ratio
    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's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Sep 9, 2009, 12:43 AM

    Is this a real company?
    zetablue1's Avatar
    zetablue1 Posts: 28, Reputation: 1
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    #4

    Sep 9, 2009, 08:32 PM
    Quote Originally Posted by morgaine300 View Post
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #5

    Sep 10, 2009, 01:38 AM

    You're welcome. :-)
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