Which Statement Is Correct

question 26

Multiple Choice

Which statement is correct?

• A)Tax rates are the key determinant to a company's dividend policy.
• B)Firms are equally likely to increase or decrease their normal dividends per share.
• C)Dividends tend to be more erratic than earnings.
• D)Mature firms are less apt to pay dividends than young firms.
• E)Dividend growth tends to lag earnings growth.

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Definitions:

Amendment

A formal change or addition made to a document, law, or piece of legislation.

Bill of Rights

The collective name for the first ten amendments to the United States Constitution, detailing the fundamental rights and protections guaranteed to American citizens.

State Interference

State interference involves actions by a state government that affect or hinder federal policies, operations, or laws.

Amendment

A formal change or addition proposed or made to a document, law, or legislative bill.