Dividend Decision

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.

Which of the following is not a financial decision?

1. Financing Decision

2. Dividend Decision

3. Investment Decision

4. Staffing Decision

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. 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.

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.

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.

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.

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.

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.

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