n NISM Certifications
XV NISM Series XV
Medium

Which of the following is true about dividend payout ratio?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. It shows the proportion of earnings distributed as dividends

    Correct answer

  2. B

    It measures total revenue growth

  3. C

    It reflects market capitalization

  4. D

    It calculates debt-equity proportion

Why this is the answer

Dividend Payout Ratio = Dividends / Net Income. It indicates how much profit a company returns to shareholders versus retained for growth. Other options are unrelated.

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