Which Statement About Retained Profits and Dividends Is True

question 41

Multiple Choice

Which statement about retained profits and dividends is true?

• A)Dividends and retained profits are two sides of the same coin.
• B)In Australia, industrial companies, on average, pay out about 30% of their earnings as dividends.
• C)On average, dividends are a relatively small component of return on shares compared to capital gains.
• D)All of the statements are true.

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Definitions:

Quantity of Money

The total amount of money available in an economy at a specific time, including currency, coins, and balances in bank accounts.

Rate of Growth

The percentage change in a variable, such as economic output, population, or investment, over a specified period, indicating how quickly it is increasing or decreasing.

Quantity of Money

The total amount of money available in an economy, including all physical money and digital balances, governed by the central bank's monetary policy.

Low Levels of Inflation

A situation characterized by a slow rise in the general level of prices for goods and services over a period, indicating a stable economic environment.