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What is the payout policy of a company who is paying no dividends for the last...

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Finance

What is the payout policy of a company who is paying nodividends for the last 5 years and the companies diluted earningsper share for last 5 years is also zero or negative. We need todetermine payout policy only on the basis of the payout ratio, sohow can we describe the payout policy when there is no dividend, nodiluted earning per share?

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Diluted earnings pershareThe process of estimating the quality of earnings per share of afirm by exercising all convertible securities of that firm thevalue of diluted earnings per share can be ascertained Alloutstanding preferred shares debentures stock options andwarrants convertible in nature can be used to estimate the qualityof earnings per sharePayout ratio isalso called dividend payout ratio it shows the relationshipbetween general stock holders and the amount of dividend declaredto pay such stock holdersDividend is paid after the payment of tax and disbursement ofthe amount to preference stock holders    See Answer
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What is the payout policy of a company who is paying nodividends for the last 5 years and the companies diluted earningsper share for last 5 years is also zero or negative. We need todetermine payout policy only on the basis of the payout ratio, sohow can we describe the payout policy when there is no dividend, nodiluted earning per share?

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