Corporate Dividends Are Less Volatile Than Corporate Earnings

question 98

True/False

Corporate dividends are less volatile than corporate earnings.

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Definitions:

Book Value

The net value of an asset calculated as the original cost minus depreciation, amortization, or impairment costs.

Cash Dividends

Payments made by a company out of its profits to its shareholders, typically in the form of cash.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.

Incorporation Date

The specific date on which a legal entity was legally created or incorporated, officially beginning its existence as a corporate body.