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Dividend Payout Ratio Net Income: $80,000 Dividends Paid: $20,000 Requirements: Calculate the Dividend Payout Ratio. Explain the significance of this ratio for investors. Discuss

Dividend Payout Ratio Net Income: $80,000

  • Dividends Paid: $20,000

Requirements:

  • Calculate the Dividend Payout Ratio.
  • Explain the significance of this ratio for investors.
  • Discuss the potential impact of increasing dividends on the company’s cash flow.
  • Suggest alternative uses for the retained earnings.

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