[amp_mcq option1=”Rate of Interest < Rate of Return" option2="Rate of Interest > Rate of Return” option3=”Both A and B” option4=”None of A and B” correct=”option1″]
Detailed SolutionBenefit of ‘Trading on Equity’ is available only if:
Financial management
2. Current price is Rs 40 and dividend paid is Rs 10 then dividend yield will be
[amp_mcq option1=”Rs 25.00″ option2=”25.00%” option3=”Rs 4.00″ option4=”4.00%” correct=”option4″]
Detailed SolutionCurrent price is Rs 40 and dividend paid is Rs 10 then dividend yield will be
3. If the following is an element of dividend policy?
[amp_mcq option1=”Production capacity” option2=”Change in management” option3=”Informational content” option4=”Debt service capacity” correct=”option3″]
Detailed SolutionIf the following is an element of dividend policy?
4. An expected rate of return is denoted by
[amp_mcq option1=”e-bar” option2=”r-bar” option3=”r-hat” option4=”e-hat” correct=”option1″]
5. Dividend policy of a firm affects both the long-time financing and __________ wealth.
[amp_mcq option1=”Owners” option2=”Creditors” option3=”Debtor” option4=”Shareholders” correct=”option1″]
6. Which, among the following, are common misconceptions about cost of capital?
[amp_mcq option1=”Depreciation-generated funds have no cost” option2=”Cost of capital is low if a project is heavily debt-financed” option3=”Cost of equity is equal to the dividend rate” option4=”All of the above” correct=”option4″]
Detailed SolutionWhich, among the following, are common misconceptions about cost of capital?
7. Savings in respect of a cost is treated in capital budgeting as:
[amp_mcq option1=”An Inflow” option2=”An Outflow” option3=”Nil” option4=”None of the above” correct=”option1″]
Detailed SolutionSavings in respect of a cost is treated in capital budgeting as:
8. Operating Leverage is the response of changes in __________
[amp_mcq option1=”EBIT to the changes in sales” option2=”EPS to the changes in EBIT” option3=”Production to the changes in sales” option4=”None of the above” correct=”option1″]
Detailed SolutionOperating Leverage is the response of changes in __________
9. ‘Bird in hand’ argument is given by:
[amp_mcq option1=”Walker’s Model” option2=”Gordon’s Model” option3=”MM Mode” option4=”Residuals Theory” correct=”option1″]
10. Situation in which new business reduces an existing business of firm is classified as
[amp_mcq option1=”non-cannibalization effect” option2=”cannibalization effect” option3=”external effect” option4=”internal effect” correct=”option2″]