What does a dividend payout of 45 percent indicate?

A. A 45 percent dividend payout indicates a firm pays 45 percent of its net income available to common stockholders out in common dividends
B. A 45 percent dividend payout indicates a firm pays out 45 percent of its net income to its preferred and common stockholders.
C. A 45 percent dividend payout indicates a firm pays $0.45 of every dollar of net income to its common stockholders.
D. A 45 percent dividend payout indicates that common stockholders are earning a 45 percent return on their investment.


Ans: A. A 45 percent dividend payout indicates a firm pays 45 percent of its net income available to common stockholders out in common dividends

Business

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