CFA Practice Question

There are 151 practice questions for this study session.

CFA Practice Question

Which is the most likely a warning sign of dividend insustainability?
A. Dividend coverage ratio: 2.5.
B. FCFE coverage ratio: 2.5.
C. Debt-equity-ratio: 80%.
Explanation: As a general rule of thumb, a company's debt to equity ratio should NOT exceed 50%.

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