The following is a regression of dividend payout ratios on the risk and ln(market capitalization: in millions)

Question:

The following is a regression of payout ratios on the risk and ln(market capitalization: in millions) of chemical firms:
Dividend Payout Ratio = 0.14 + 0.05 [ln(Market Capitalization in Millions)] − 0.1(Beta)
Harman Chemicals has a market capitalization of $1.5 billion and a beta of 1.2. It pays out 22% of its earnings as dividends. How does this payout compare to the industry?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...