Session 8: Corporate Finance Reading 31: Dividends and Share Repurchases: Analysis
LOS h: Discuss global trends in corporate dividend policies
Which of the following statements about differences observed in payout trends in US and Europe is most accurate?
A) |
A lower proportion of US companies pay dividends as compared to their European counterparts. | |
B) |
A higher proportion of US companies pay dividends as compared to their European counterparts. | |
C) |
The percentage of companies making stock repurchases has been trending downwards both in the US and Europe. | |
A lower proportion of US companies pay dividends as compared to their European counterparts. The percentage of companies making stock repurchases has been trending upwards in the US (since 1980s), the UK and continental Europe (since 1990s). |