Dividend Payout Ratio is:
(a) PAT Capital
(b) DPS ÷ EPS
(c) Pref. Capital ÷ PAT
(d) PAT Capital ÷ Equity Dividend
To calculate EPS, Profit after Tax and Preference Dividend is divided by:
(a) MP of Equity Shares
(b) Number of Equity Shares
(c) Face Value of Equity Shares
__ measure what a company’s pays out to investors in the form of Dividend
(a) return on equity
(b) dividend payout ratio
(c) book value
In the case of ___ preference shares, the arrears of the dividends are carried forward and paid out of the profits of the subsequent years.
(a) Participating
(b) Convertible
(c) Cumulative
(d) Redeemable
__ Preference shares carry the right to cumulate the dividends
(a) Converted
(b) Cumulative
(c) Non-converted
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MM Model of Dividend irrelevance uses arbitrage between
(a) Dividend and Bonus
(b) Dividend and Capital Issue
(c) Profit and Investment
MM Model argues that Dividend is irrelevant as
(a) the value of the firm depends upon earning power
(b) the investors buy shares for capital gain
(c) The Dividend is payable after deciding the retained earnings
(d) dividend is a small amount
The Dividend declared between two annual general meetings is called __ Dividend.
(a) Proposed
(b) Final
(c) Interim
Dividend declared by a company must be paid in
(a) 20 days
(b) 30 days
(c) 32 days
(d) 42 days
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‘Constant Dividend Per Share’ Policy is considered as:
(a) Increasing Dividend Policy
(b) Decreasing Dividend Policy
(c) Stable Dividend Policy
Which of the following is not a type of dividend payment?
(a) Bonus Issue
(b) Right Issue
(c) Share Split
__ Dividend is given in the form of shares.
(a) Interim
(b) Scrip
(c) Final
How to calculate dividend yield?
(a) Annual Dividend per share/stock price by share
(b) Monthly Dividend per sale/price
In-stock dividend:
(a) Authorized capital always increases
(b) Paid-up capital always increases
(c) Face value per share decreases
(d) Market price for share decreases
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Which of the following is not relevant for dividend payment for a year?
(a) Cash flow position
(b) Profit position
(c) Paid up capital
(d) Retained Earnings
Which of the following generally does not result in an increase in total dividend liability?
(a) Share-split
(b) Right Issue
(c) Bonus Issue
Dividends are paid out of
(a) Accumulated Profits
(b) Gross Profit
(c) Profit after Tax
(d) General Reserve
The __ Dividend recommended by the Board of Directors.
(a) Proposed
(b) Final
(c) Interim
Residual theory argues that a Dividend is a
(a) Relevant Decision
(b) Active Decision
(c) Passive Decision
(d) Irrelevant Decision
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The dividend irrelevance argument of the MM Model is based on the following:
(a) Issue of Debentures
(b) Issue of Bonus Share
(c) Arbitrage
(d) Hedging
Gordon’s Model of dividend relevance is the same as
(a) No-growth Model of equity valuation
(b) Constant growth Model of equity valuation
(c) Price-Earning Ratio
(d) Inverse of Price Earnings Ratio
Every company should follow __ dividend payment
(a) High
(b) Low
(c) Stable
(d) Fixed
Profit available for dividend distribution is called ___
(a) Capital profit
(b) Divisible profit
(c) Capital Reserve
(d) None of these
Which of the following stresses an investor’s preference to reorient DividendsDividend rather than higher future capital gains?
(a) Walter’s Model
(b) Residuals Theory
(c) Gordon’s Model
(d) MM Model
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Walter’s Model suggests that a firm can always increase, i.e., the share by __ Dividend.
(a) Increasing
(b) Decreasing
(c) Constant
(d) None of the above
Which of the following is not true for the MM Model?
(a) Share price goes up if Dividend is paid
(b) Share price goes down if Dividend is not paid
(c) Market value is unaffected by Dividend policy
Which of the following represents passive dividend policy?
(a) that Dividend is paid as a % of EPS
(b) that Dividend is paid as a constant amount
(c) that Dividend is paid after retaining profits for reinvestment
__ The dividend was declared at the shareholders’ annual general meeting.
(a) Proposed
(b) Final
(c) Interim
Dividend Distribution Tax is payable by
(a) Shareholders to Government
(b) Shareholders to Company
(c) Company to Government
(d) Holding to Subsidiary Company
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Unclaimed Dividend is shown in the balance sheet under the head __
(a) Reserves and Surplus
(b) Current Liabilities
(b) Loans and Advances
(d) Current Assets
Is the following an element of dividend policy?
(a) Production capacity
(b) Change in Management
(c) Informational content
(d) Debt service capacity
Cumulative preference shareholders have voting rights if dividends are in arrears for years.
(a) 1
(b) 2
(c) 3
(d) 4
The net profit available for dividend distribution is called __
(a) Net Profit
(b) Surplus
(c) Divisible Profit
(d) Capital Profit
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These shares have a preferential right to pay dividends and the return of capital at the time of the company’s winding up.
(a) Equity share
(b) Preference share
(c) Bonus share
Dividends are usually paid as a percentage of ______
(a) Authorized share capital
(b) Net profit
(c) Paid-up capital
(d) Called-up capital
