Which of the Following Factors Would Most Likely Be Present

Multiple Choice

Which of the following factors would most likely be present if a company increases its dividend payout ratio significantly?

A) a high debt/equity ratio (i.e.,use of a large amount of financial leverage)
B) a quick ratio that is significantly below the industry average
C) current shareholders cannot participate in a new offering and desire to maintain ownership control
D) the variability of expected future earnings decreases