Two Otherwise Equal Companies Have Significantly Different Dividend Payout Ratios

question 58

Multiple Choice

Two otherwise equal companies have significantly different dividend payout ratios. Which of the following statements is most likely to be correct? The company with higher the dividend payout ratio:

• A) will have a higher inventory turnover ratio.
• B) will have a lower inventory turnover ratio.
• C) will have higher earnings growth.
• D) will have lower earnings growth.

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