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measures the percentage of earnings distributed in the form of cash dividends to common stockholders. It is computed by dividing total cash dividends declared on common stock by net income.

User Mania
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Final answer:

The subject of this question is Business, and it pertains to the calculation of the percentage of earnings distributed as cash dividends to common stockholders. This percentage is computed by dividing the total cash dividends declared on common stock by the net income of a company.

Step-by-step explanation:

The subject of this question is Business. Specifically, it pertains to the calculation of the percentage of earnings distributed as cash dividends to common stockholders. This percentage is computed by dividing the total cash dividends declared on common stock by the net income of a company.

User Richard Bender
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