Question: Which statement is correct? Tax rates are the key determinant to a companys dividend policy. Firms are equally likely to increase or decrease their normal

Which statement is correct?

Tax rates are the key determinant to a companys dividend policy.Firms are equally likely to increase or decrease their normal dividends per share.Dividend growth tends to lag earnings growth.

Dividends tend to be more erratic than earnings.Mature firms are less apt to pay dividends than young firms.

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