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.

Question

Quizplus · Accepted Answer

According to the passage, "the total amount of dividends paid by these firms increased from $30.5 billion in 1984 to $212.5 billion in 2004." Therefore, the correct statement is that the total amount of dividends paid by these firms was greater in 2004 than in 1984.

Which One of the Following Statements Correctly Applies to U