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Question 6 PC Corp has $250 million in earnings, pays $25 million in dividends, has cash flow from operations of $200 million, and had capital

Question 6

PC Corp has $250 million in earnings, pays $25 million in dividends, has cash flow from operations of $200 million, and had capital expenditures of $20 million. The company spent $10 million for share repurchases. What is their dividend coverage ratio?

2

8

7.1

5

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