Which One of These Statements Is Correct

question 3

Multiple Choice

Which one of these statements is correct?

• A) Dividends tend to fluctuate in direct relation to changes in annual earnings.
• B) Managers are less concerned with the change in the dividend than with the actual amount of the dividend.
• C) Managers tend to avoid smooth dividends as they don't signal the firm's most recent successes.
• D) Managers tend to only increase dividends when they believe the increased amount can be sustained.

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Definitions:

Fertilized Egg

A fertilized egg, also known as a zygote, is the initial stage of development resulting from the union of a sperm cell and an egg cell, marking the beginning of pregnancy.

Fetus

A developing mammal or human within the womb, after the embryonic stage and before birth.

Embryo

An embryo is an early stage of development of a multicellular organism following fertilization, prior to becoming a fetus.

Blastocyst

An early stage of embryonic development in mammals; a structure formed in the early development of mammals. It possesses an inner cell mass, which subsequently forms the embryo.