Dividend Payout Ratio

nitz

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Joined
Feb 12, 2010
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Dyke Industries has made the following projections for next year. What is their dividend payout ratio?

Return on sales 8.50%
Total asset turnover 1.3
Equity multiplier 1.7
Sustainable growth rate 8.27%

The formula that we were provided in class isn't really doing it for me... Help, ASAP!!! :(
We were given:
SGR = (Net Income (1-d))/Equity .. and then we were supposed to solve for d
 
nitz said:
SGR = (Net Income (1-d))/Equity .. and then we were supposed to solve for d
Start using a 1letter variable when using equations:

S = N(1 - d) / E

S = (N - Nd) / E
SE = N - Nd
Nd = N - SE
d = (N - SE) / N
 
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