Question: Which statement is true? A. The plowback and dividend ratios should always be the same. B. As a general rule, a higher P/E ratio indicates

Which statement is true?

A. The plowback and dividend ratios should always be the same.

B. As a general rule, a higher P/E ratio indicates a less risky stock.

C. Profit (net income) is the same as free cash flow.

D. Shareholders get their dividends before bondholders get theirs.

E. A corporation is not obligated to pay a dividend to its common shareholders.

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