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Basic Question 2 of 2

True or False? All else equal, a large and stable business is more likely to maintain a higher dividend payout ratio than a smaller, faster growing business.

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

calculate and interpret dividend coverage ratios based on 1) net income and 2) free cash flow;

identify characteristics of companies that may not be able to sustain their cash dividend.

CFA® 2025 Level II Curriculum, Volume 3, Module 16.