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when calculating the dividend capacity, we need to add dep to the profit
do we need to add after calculating PAT or add to PBIT then calculate tax?Hello.
With reference to the dividend policy question in the exam, I have calculated the dividend payout ratio on the basis of dividend capacity, since dividend capacity indicates the amount of distributable dividends, will I be able to secure marks on that basis ?
I assume you are referring to yesterday’s exam. I have not see the exam and so I cannot really comment without having seeing the actual question.
Yes I was referring to yesterday’s exam. It’s bothersome.
We were given 3 companies with their respective Profit after interest & tax, initial expenditure, & dividends paid. We were asked to determine their dividend policies , their Advantages & disadvantages & suitable calculations. So hence my question on Dividend payout ratio.
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