Three of the Following Considerations May Suggest That the Firm

Three of the following considerations may suggest that the firm should start paying out cash to its shareholders.Which one is not a relevant consideration?

A) Is the company generating positive free cash flow?
B) The company is earning a high profit margin?
C) Does the company have sufficient cash for emergencies and unexpected investment opportunities?
D) Is the debt ratio prudent?

Correct Answer:

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