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    Exam 13: Distribution of Retained Earnings: Dividends and Stock Repurchases
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    Dividend Payments Cannot Exceed the Balance Sheet Item "Retained Earnings
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Dividend Payments Cannot Exceed the Balance Sheet Item "Retained Earnings

Question 15

Question 15

Multiple Choice

Dividend payments cannot exceed the balance sheet item "Retained earnings." This is known as the _____. 


A) stock split rule
B) free cash flow rule
C) constant payout rule
D) impairment of capital rule
E) dividend irrelevance rule

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