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Consider the following statements: Statement 1: If the FCFE coverage ratio is less than 1, the companys liquidity position will improve. Statement 2: Growth companies
Consider the following statements:
Statement 1: If the FCFE coverage ratio is less than 1, the companys liquidity position will improve.
Statement 2: Growth companies are likely to have a higher dividend payout ratio compared to stable, mature companies.
Which of the following is most likely?
| Only Statement 1 is correct. |
| Only Statement 2 is correct. |
| Both statements are incorrect. |
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