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    alterescu's Avatar
    alterescu Posts: 11, Reputation: 1
    New Member
    		  
    #1

    Dec 9, 2009, 09:41 AM
    Pay out Ratio
    Need assistance :-)

    Moon and Sons, Inc. earned $ 120 million last year and retained $ 72 million. What is the payout ratio?

    the formula, at lease the basic one is

    DPR = Dividends per Share / Earnings per Share

    how should I calculate it with no data about the amount of shares ?

    Thanks
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Dec 9, 2009, 10:51 AM
    You don't need any share info for this one. If the total earnings was 120M and 72M of that was plowed back in, the company paid out 48M of its earnings. What percentage of 120 does 48 represent? (Yep, it's really that simple.) Cheers!
    alterescu's Avatar
    alterescu Posts: 11, Reputation: 1
    New Member
    		  
    #3

    Dec 9, 2009, 08:07 PM

    Thanks

    It was so easy that I missed that :-)
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