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A High Payout Ratio Indicates

Question 42

Multiple Choice

A high payout ratio indicates


A) A firm is investing heavily in plant and equipment
B) A firm has high current obligations
C) The firm is probably in the mature phase of its life cycle and does not have many growth opportunities available
D) The firm is probably in Stage II of its life cycle.
E) The firm probably has too many highly profitable investment opportunities.

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