Dividend Decision

Q.

Whats the biggest challenge for most businesses when going online?

1. Planning a budget

2. Developing a plan

3. Optimising a website

4. Defining a customer base

Q.

Which of the following is not a financial decision?

1. Financing Decision

2. Dividend Decision

3. Investment Decision

4. Staffing Decision

Q. Dividend is a part of which is distributed among shareholders of a company.

1. Profit
2. EBIT
3. EBT
4. Revenue

Q.

___ is that part of the profit, which is distributed among shareholders.

1. Dividend

2. Equity

3. Interest

4. Share

Q.

Process are classified into different groups in__________ (A) shortest job scheduling algorithm (B) Round-robin scheduling algorithm (C) Priority scheduling algorithm (D) Multilevel queue scheduling algorithm

Q.

Companies with higher growth paternal are likely to

1. pay higher dividends

2. pay lower dividends

3. dividends are not affected by growth considerations

4. None of the above

Q.

A decision is taken to distribute certain part of the profit to shareholders after paying tax. What is the decision called?

1. Investment decision

2. Dividend decision

3. Financial decision

4. Business decision

Q.

Higher dividend per share is associated with:

(a) High earnings, high cash flows, unstable earnings and higher growth opportunities

(b) High earnings, high cash flows, stable earnings and higher growth opportunities

(c) High earnings, high cash flows, stable earnings and lower growth opportunities

(d) High earnings, low cash flows, stable earnings and lower growth opportunities

Q.

Companies with a higher growth pattern are likely to:

1. pay lower dividends

2. dividends are not affected by growth considerations

3. none of the above

4. pay higher dividends

Q.

Name the financial decision which relates to the disposal of profits.

1. Financing decision

2. Capital budgeting decision

3. Dividend decision

4. Investment decision

Q.

Higher dividend per share is associated with:

1. high earnings, high cash flows, stable earnings and lower growth opportunities

2. high earnings, low cash flows, stable earnings and lower growth opportunities

3. high earnings, high cash flows, stable earnings and high growth opportunities

4. high earning, high cash flows, unstable earnings and higher growth opportunities

Q.

The factors affecting dividend decision are:

1. Earnings of the company

2. Cash flow position of the company

3. Growth opportunities

1. 1 & 3

2. 1 , 2 & 3

3. 1 & 4

4. 2 & 3

Q.

Which of these factors affect dividend decisions?

1. Preference of shareholders

2. Earning

3. Stability of dividend

4. All of the above

Q.

Which of the following will result in an increase in earnings per share?

1. Accruing expenses at year-end.

2. Selling additional shares of common stock during the year.

3. Accruing revenue at year-end.

4. Receiving cash from a tenant that is recorded as unearned revenue.

Q. Tata International Ltd. earned a net profit of Rs.50crores. Ramesh, the finance manager of Tata International Ltd.w ants to decide how to appropriate these profits. Identify the decision that Ramesh will have to take.

1. Dividend decision
2. Investment decision
3. Financial decision
4. None of the above

Q. Dividend is paid out of year's earnings.

1. Current
2. Past
3. Next

Q. What is meant by Dividend decision?

Q.

According to you, which company is in a position to declare high dividends?

1. Stable earnings

2. Shareholder's preference

3. Access to capital market

4. Taxation policy

Q. Tata International Ltd. earned a net profit of Rs.50crores. Ramesh, the finance manager of Tata International Ltd.wants to decide how to appropriate these profits. Which of the following factors will help him in taking this decision?

1. Stability of earnings
2. Taxation policy
3. Legal constraints
4. Amount of earnings

Q. What is meant by 'Dividend Decision'?

Q. You are the finance manager of a company. The board of directors have asked you to decide the dividend policy. What factors would you keep in mind to perform this function?

Q.

HCL Company's finance manager has decided to retain its entire profit to meet financial requirement for its growth. Name the type of decision involved?

1. Investment decision

2. Finance decision

3. Dividend decision

4. All of the above

Q. What is meant by 'Financial Planning'?

Q. Terry International Ltd. earned a net profit of Rs. 50 crores. Ankit, the finance manager of Terry International Ltd, wants to decide how to appropriate these profits. Identify the decision that Ankit will have to take and also discuss any five factors which help him in taking this decision.

Q. Identify the financial decision which determines the amount of profit earned to be distributed and to be retained in the business.

Q.

___ relates to how much of the company's after-tax profit is to be distributed to the shareholders and how much of it should be retained in the business for meeting the investment requirement.

1. Financing decision

2. Investment decision

3. Dividend decision

4. Capital budgeting

Q. Financial planning provides a link between _________ and ________ decisions on a continuous basis.

1. investing, financing
2. operating, financing
3. investing, operating
4. non-capital, capital

Q. Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as _________________.

1. fundamental structure
2. fundamental adjustment
3. fundamental betas
4. fundamental operations

Q. Chandra Ltd, is a manufacturer of Laptops. It made a profit of 1000 crores. The director have proposed a dividend of 38%. As a finance manager of the company, what factors would you consider while formulating a dividend policy of the company?

Q. A higher tax rate would result in dividend payout.

1. Higher
2. Lower
3. Constant