Which One of the Following Statements Is Correct Concerning Dividends

question 57

Multiple Choice

Which one of the following statements is correct concerning dividends in the U.S.?

• A)The total amount of dividends paid by the S&P 500 companies has increased steadily every year since 1985.
• B)Only financial sector firms decreased dividends in 2008.
• C)Dividend amounts tend to react quickly to changes in the economy.
• D)Firms tend to quickly adjust their dividends to changes in the firm's earnings per share.
• E)There are less than 75 companies in the U.S. that have consistently increased their dividends for at least the past 25 years.

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Definitions:

Journal Entries

The recordings of financial transactions in a ledger, marking the first step in the accounting cycle.

Year-End Balance

The financial position of an account at the end of the fiscal year after all debits and credits are taken into account.

Paid-In Capital

Funds received from investors in exchange for stock, representing the capital provided by shareholders through the purchase of shares.

Par Value

The stated or principal value of a bond, stock share, or coupon as specified on its certificate or document.