In the Real World,dividends

question 35

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.
• E) are usually set as a fixed percentage of earnings, e.g., at 40% of earnings, so if EPS = $2.00, then DPS will equal $0.80. Once the percentage is set, then dividend policy is on "automatic pilot" and the actual dividend depends strictly on earnings.

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Definitions:

Biopsychosocial Systems

An approach in psychology that examines psychological disorders and treatments based on the complex interplay between biological, psychological, and social factors.

Biological Systems

Complex networks of biologically relevant entities or processes that interact, such as ecosystems or physiological systems within the body.

Impressionable Systems

Systems that are easily influenced or modified by external factors, typically used in the context of organizations, networks, or technologies.

Ions

Atoms or molecules that have gained or lost one or more electrons, making them positively or negatively charged.