(b) Earning per share before split (EPS) = $10
Dividend per share before split (DPS) = $6
Payout ratio = DPS / EPS = 6/10 = 60%
Answer = 60.0
Since total earnings are same, EPS will be half of what it was before split.
Therefore, Earning per share after split (EPS) = $5
Dividend per share after split (DPS) = $3
Payout ratio = DPS / EPS = 3/5 = 60%
Answer = 60.0
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