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Rank the Following Goals in Increasing Order of Importance in a Compromise

Question 352

Essay

Rank the following goals in increasing order of importance in a compromise dividend policy.
I. Avoid dividend cuts
II. Maintain a target debt/equity ratio
III. Avoid the need to sell equity
IV. Avoid cutting back on positive NPV projects

Correct Answer:

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IV, I, III, II
IV. Avoid cutti...

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