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Basic Question 1 of 2
Which is the most likely a warning sign of dividend sustainability?
B. FCFE coverage ratio: 1.0.
C. Debt-equity-ratio: 20%.
A. Dividend coverage ratio: 2.5.
B. FCFE coverage ratio: 1.0.
C. Debt-equity-ratio: 20%.
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I used your notes and passed ... highly recommended!

Lauren
Learning Outcome Statements
describe global variations in ownership structures and the possible effects of these variations on corporate governance policies and practices;
CFA® 2025 Level II Curriculum, Volume 3, Module 16.