Which of the Following Statements Is NOT True About Dividend

question 23

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 unprofitable years, companies are still required by law to pay dividends to their stockholders.
• E) Dividend payments are made to stockholders on a regular basis.

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Definitions:

Barriers

Obstacles or factors that hinder progress or achievement.

Accumulated Perceptions

The total or aggregate views and understandings formed by an individual or group, built up over time.

Lenses

Tools or perspectives through which subjects or issues are analyzed or viewed.

Discrepancy

A difference or inconsistency between two or more things supposed to be in agreement.