In the Real World, Dividends

question 13

Multiple Choice

In the real world, dividends

• A) are usually more stable than earnings.
• B) fluctuate more widely than earnings.
• C) tend to be a lower percentage of earnings for mature firms.
• D) 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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Definitions:

Fictitious Sources

Information or references claimed in a work or argument that do not actually exist; often used to mislead or fabricate support.

Necessity Defense

A legal defense asserting that a criminal act was justified because it was necessary to prevent a more serious harm.

Necessity

An affirmative defense in which the defendant tries to prove that he or she was acting to prevent imminent harm and that there was no legal alternative to the action the defendant took.

Justifiable Use of Force

Legally permitted application of force under certain circumstances, such as self-defense or to uphold the law.