The dividend pay out ratio can be determined by dividing dividend per share by

[amp_mcq option1=”Earning per share” option2=”Number of equity shares” option3=”Market value per share” option4=”Book value per share” correct=”option1″]

The correct answer is A. Earning per share.

The dividend payout ratio is a measure of how much of a company’s earnings are paid out as dividends to shareholders. It is calculated by dividing the company’s dividend per share by its earnings per share.

A high dividend payout ratio indicates that a company is returning a lot of money to shareholders, while a low dividend payout ratio indicates that a company is reinvesting more of its earnings back into the business.

Earnings per share (EPS) is a measure of a company’s profitability. It is calculated by dividing a company’s net income by the number of shares outstanding.

Number of equity shares is the total number of shares that a company has issued.

Market value per share is the price of a company’s stock on the stock market.

Book value per share is the value of a company’s assets minus its liabilities, divided by the number of shares outstanding.