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:

Current Demand

The existing desire or need for products or services in the market at a specific point in time.

Price Expectation

Anticipations about future prices that can influence the current decisions of consumers and producers.

Surplus

A market condition where the quantity supplied exceeds the quantity demanded at a given price, often leading to downward pressure on prices.

Shortage

A market condition where the demand for a product exceeds its supply at a particular price.