Which One of the Following Statements Correctly Applies to U

question 101

Multiple Choice

Which one of the following statements correctly applies to U.S.industrial firms based on the period of 1984-2004?

• A)Earnings growth rates tend to lag dividend growth rates.
• B)Dividends tend to fluctuate significantly from quarter to quarter.
• C)The percentage of these firms paying dividends in 2004 was higher than in 1984.
• D)The total amount of dividends paid by these firms was greater in 2004 than in 1984.
• E)Non-dividend paying firms in 1984 were more apt to commence paying regular dividends than to implement a stock repurchase program.

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Definitions:

Confidence Coefficient

The level of certainty, typically expressed as a percentage, associated with a confidence interval.

Null Hypothesis

A proposition in statistics that suggests no significant difference or effect exists between certain characteristics of a population.

Tukey-Kramer

A statistical test used to find differences between groups’ means while controlling for type I error.

Multiple Comparison Procedure

A statistical method used to evaluate differences among group means after an ANOVA, controlling for the error rate.