Financial Management-Dividend Policy- Determinants (CBSE-NET (Based on NTA-UGC) Management (Paper-II)): Questions 1 - 3 of 3

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Question number: 1

» Financial Management » Dividend Policy- Determinants

Appeared in Year: 2012

MCQ▾

Question

Which of the following is the main assumption of Walter Valuation Model? (June Paper II)

Choices

Choice (4) Response

a.

All financing is done through Retained earnings and external sources of funds.

b.

With additional investment the firms business risk will change.

c.

There is a change in the key variables such as EPS and DPS

d.

None of the above

Question number: 2

» Financial Management » Dividend Policy- Determinants

Appeared in Year: 2013

MCQ▾

Question

Which of the following is one of the critical assumptions of Walters’ Model? (June Paper II)

Choices

Choice (4) Response

a.

All financing is done through retained earnings; external sources of funds like debt or new equity capital are not used.

b.

The retention ratio, once decided upon, is constant. Thus, the growth rate, is also constant.

c.

The capital markets are perfect and the investors behave rationally.

d.

Question does not provide sufficient data or is vague

Question number: 3

» Financial Management » Dividend Policy- Determinants

Appeared in Year: 2013

MCQ▾

Question

Which ratio explains that how much portion of earning is distributed in the form of dividend? (June Paper II)

Choices

Choice (4) Response

a.

Dividend – Debt Ratio

b.

Equity – Debt Ratio

c.

Earning – Yield Ratio

d.

Pay-out Ratio

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