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:

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Triple Bottom Line

A framework for evaluating a company's performance based on its impact on people, planet, and profit.

Sustainability Reporting

The practice of disclosing a company's environmental, social, and governance (ESG) impacts and sustainability practices to stakeholders.

Performance Metrics

Quantitative measures used to gauge an organization's performance in various areas.