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Which of the following factors would most likely be present if a company increases its dividend payout ratio significantly? a high debt/equity ratio (i.e., use

Which of the following factors would most likely be present if a company increases its dividend payout ratio significantly?

  1. a high debt/equity ratio (i.e., use of a large amount of financial leverage)

  2. a quick ratio that is significantly below the industry average

  3. current shareholders cannot participate in a new offering and desire to

    maintain ownership control

  4. the variability of expected future earnings decreases

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