In the Real World, Which Statement Regarding Dividends Is True

question 45

Multiple Choice

In the real world, 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:

Positive Land Rent

The income received by landowners for the use of their land, typically due to the land's desirable location or fertility, which generates a return above the minimum needed to bring the land into production.

Values

The importance or worth that people attach to different things, ranging from material goods to principles and ethical standards.

Acres

A measurement unit used primarily in the United States, equal to 43,560 square feet, often used to describe the size of land.

Allocation of Land

The process of distributing land resources among competing uses or users according to certain criteria, policies, or plans.