Which One of the Following Statements Is Correct

question 40

Multiple Choice

Which one of the following statements is correct?

• A) A reduction in personal tax rates tends to lead to lower dividends.
• B) Dividends tend to fluctuate significantly from quarter to quarter.
• C) Earnings growth tends to lag dividend growth.
• D) Dividend payments are highly concentrated in a relatively small set of large companies.
• E) Non-dividend-paying companies are generally more apt to commence paying regular dividends than to implement a stock repurchase program.

---

Definitions:

Well-Organized Manner

A methodical and structured approach to arranging or presenting information.

Business Communication

The sharing of information between people within and outside an organization that is performed for the commercial benefit of the organization.

Scope

The extent or range of view, outlook, application, operation, or effectiveness of an object or concept.

Business Message

Any form of communication used within a professional setting to convey information, decisions, or requests.