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Basic Question 2 of 7

According to the impairment of capital rule, companies cannot pay out dividends that exceed:

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

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.