Calculate the dividend payout ratio

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Question - The first ratio to be analysed by Amy and Fred is the dividend payout ratio. This ratio measures the proportion of earnings that is paid out to shareholders in the form of dividends. There are? 1,270 million shares and the dividend payment is an annual payment of 20 pence in both 2016 and 2017. This is a relatively small dividend? payment, which is not unusual for? high-growth companies who spend a lot of their income on research and? development, and other growth activities. The?after-tax profit for the year 2017 is £983 million and the? after-tax profit for the year 2016 is £?2,533 million. Calculate the dividend payout ratio for 2016 and 2017.

Reference no: EM133077681

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