Which of the Following Statements Is NOT True About Dividend

question 112

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 bad years, companies are still required to pay dividends.