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Basic Question 2 of 2
True or False? All else equal, a large and stable business is more likely to maintain a higher dividend payout ratio than a smaller, faster growing business.
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Learning Outcome Statements
calculate and interpret dividend coverage ratios based on 1) net income and 2) free cash flow;
identify characteristics of companies that may not be able to sustain their cash dividend.
CFA® 2025 Level II Curriculum, Volume 3, Module 16.