An increase in which of the following variables is likely to lead to an increase in a firm's dividend payout?

Question

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Free cash flow generated is the excess cash generated by a firm after meeting its capital expenditure requirements. One of the primary uses of this cash is to either pay off debt or return cash to shareholders in the form of dividends. Therefore, an increase in free cash flow generated is likely to lead to an increase in a firm's dividend payout. A, B, and C are unlikely to lead to an increase in the firm's dividend payout.

An Increase in Which of the Following Variables Is Likely