RAJ Industries Earned an Income of $4,000,000 and Distributed $850,000

RAJ Industries earned an income of $4,000,000 and distributed $850,000 as dividends. A year later, earnings had risen by 5% and RAJ distributed earnings of $700,000. What may investors have concluded about RAJ?

A) RAJ is retaining earnings to improve share prices.
B) RAJ is paying a dividend in order to improve share prices.
C) RAJ is indicating an expectation of significant future earnings growth.
D) RAJ is going to retire debt and and replace it by issuing preferred shares.
E) RAJ is signalling a concern that their Brazilian facilities would be taken over and nationalized.