When return on investment is equal to the market capitalization rate, the optimum payout ratio would be :

CS Executive · Financial and Strategic Management · PYQS · December 2021
When return on investment is equal to the market capitalization rate, the optimum payout ratio would be :
(A) Zero
(B) 100%
(C) 50%
(D) All the payout ratios would be optimum

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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