The correct answer is: B. dividends per share divided by earnings per share.
The dividend-payout ratio is a measure of how much of a company’s earnings are paid out as dividends. It is calculated by dividing the company’s dividends per share by its earnings per share. A high dividend-payout ratio indicates that a company is returning a lot of money to its shareholders, while a low dividend-payout ratio indicates that a company is reinvesting more of its earnings in the business.
Option A is incorrect because the dividend yield is a measure of the annual dividend paid per share divided by the current market price per share. The capital gains yield is a measure of the increase in the market price of a share over a period of time, divided by
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