Which Statement Regarding Dividends Is True

question 65

Multiple Choice

Which statement regarding dividends is true?

• A)They are usually more stable than earnings.
• B)They fluctuate more widely than earnings.
• C)They tend to be a lower percentage of earnings for mature firms.
• D)They are usually changed every year to reflect earnings changes, and these changes are randomly higher or lower, depending on whether earnings increased or decreased.

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Definitions:

Glomerulus

A network of capillaries located at the beginning of a nephron in the kidney, involved in the filtration of blood.

Blood Pressure

Pressure exerted by blood against a vessel wall.

Active Transport

The movement of molecules across a cell membrane from a region of lower concentration to higher concentration, requiring energy.

Uric Acid

A waste product formed from the breakdown of purines, excreted in urine.