Despite recent increases in sales and cash flow that have propelled automobile companies’ common stocks to new highs, several industry analysts expect automakers, in order to conserve cash, to set dividends more conservatively that they were.
to set dividends more conservatively than they were
to set dividends more conservatively than they have been
to be more conservative than they have been in setting dividends
that they will be more conservative than they were in setting dividends
that they will be more conservative than they have been to set dividends
A) incorrect.
First, i thought that they is ambiguous, but it is not.Here they is referring to dividends. "analysts expect automakers to set dividends more conservatively than dividends were set".
if they would refer to automakers than the sentence would be" analysts expect automakers to set dividends more conservatively than automakers have been setting".
neither setting can be assumed nor have been is used.
b) incorrect.
they refers to dividends.
it can not refer to automakers because we need setting at the end. but we can only assume set,as setting is not used anywhere in the sentence.
C) correct.
they can only refer to automakers.
D) were is incorrect verb.They is not ambiguous.
e) in setting should be used. they is not ambiguous.
please correct me if i am wrong and also let me know if i missed anything.