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Q: Why are equity earnings usually greater than cash flow generated from the investment?
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In the real world you find that dividends are usually more stable than earnings or flluctuate more widely than earnings or tend to be a lower percentage of earnings for mature firms or are usuall?

Dividends are usually more stable than earnings because companies strive to maintain a consistent payout to shareholders. Dividends tend to be a lower percentage of earnings for mature firms as they may prioritize reinvesting profits for growth. Fluctuations in dividends can occur but are typically less volatile than earnings due to the importance of dividends as a signal of a company's financial health and stability.


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