Homework Answers
Earning per share = EPS = $10
Dividend per share = DPS = $4
Payout ratio = DPS/EPS = 4/10 = 0.4 = 40%
Retention rate + payout ratio = 100%
Retention rate = 100% - 40% = 60%
Answers
Payout ratio = 0.4 or 40%
Retention rate = 60%
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