The target payout ratio is:

CS Executive · Financial and Strategic Management · PYQS · December 2024
The target payout ratio is:
(A) The inverse of a firm's equity multiplier
(B) A firm's preferred rate of dividend growth
(C) A firm's long-term desired dividend to earnings ratio
(D) The preferred number of dividend payments per year divided by 12

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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