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The Market Price of XYZ Company's Common Shares Dropped from $25

Question 39

Multiple Choice

The market price of XYZ Company's common shares dropped from $25 to $21 per share.The dividend paid per share remained unchanged.The company's dividend payout ratio would:


A) increase.
B) decrease.
C) be unchanged.
D) impossible to determine without more information.

Correct Answer:

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