In the Real World, Which of the Following Is True

question 36

Multiple Choice

In the real world, which of the following is true regarding dividends?

• A) They are usually more stable than earnings.
• B) They fluctuate more widely than earnings.
• C) They tend to be a lower percentage of earnings for mature firms.
• D) They are usually changed every year to reflect earnings changes, and these changes are randomly higher or lower, depending on whether earnings increased or decreased.

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