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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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