What does a payout ratio of 0.75 indicate? The company's net income is...

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Accounting

What does a payout ratio of 0.75 indicate?
The company's net income is 75% of its total revenue.
The company is paying out 75% of its net income as dividends.
The company's dividends are 75% higher than its net income.
The company is retaining 75% of its net income.
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