Which of the Following Statements Is NOT True About Dividend

question 30

Multiple Choice

Which of the following statements is NOT true about dividend payments?

• A) Many companies distribute between 30 and 70 percent of their profits to shareholders.
• B) Some firms, especially fast-growing companies, do not pay dividends.
• C) Many fast-growing companies use cash earnings for expanding the company so that future earnings can grow even faster.
• D) During unprofitable years, companies are still required by law to pay dividends to their stockholders.
• E) Dividend payments are made to stockholders on a per-share basis.

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Definitions:

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Seven Principles

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The strategy of making a product stand out from its competitors by emphasizing unique features or benefits.