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Basic Question 12 of 13

The company needs to consider the following factors when contemplating a share repurchase program:

I. The amount of free cash flow available to the company.
II. The existing capital structure.
III. The dilutive or accretive impact of the repurchases.

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Learning Outcome Statements

compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy;

describe broad trends in corporate payout policies;

CFA® 2025 Level II Curriculum, Volume 3, Module 16.