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Basic Question 2 of 7
According to the impairment of capital rule, companies cannot pay out dividends that exceed:
B. Accumulated retained earnings.
C. Current period net income.
A. Stockholders' equity.
B. Accumulated retained earnings.
C. Current period net income.
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain factors that affect dividend policy in practice;
calculate and interpret the effective tax rate on a given currency unit of corporate earnings under double taxation, dividend imputation, and split-rate tax systems;
CFA® 2025 Level II Curriculum, Volume 3, Module 16.