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The payout ratio is calculated by dividing? cash dividends by net income less preferred dividends. dividends per share by earnings per share. dividends per share

The payout ratio is calculated by dividing?
cash dividends by net income less preferred dividends.
dividends per share by earnings per share.
dividends per share by earnings per share and dividing cash dividends by net income
less preferred dividends.
cash dividends by the market price per share.

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