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Each of the Following Factors May Cause a Corporation to Lower

Question 1

Multiple Choice

Each of the following factors may cause a corporation to lower its dividend payout ratio EXCEPT


A) the corporation's earnings predictability is high.
B) the corporation's current and quick ratios are higher than industry average.
C) the corporation's retained earnings balance is high.
D) current common shareholders are unable to participate in new equity offerings.

Correct Answer:

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