Business Finance - Study Mode
[#416] Dividend irrelevance argument of MM model is based on
Correct Answer
(D) Arbitrage
[#417] Negative net working capital implies that
Correct Answer
(B) Short-term funds have been used for fixed assets
[#418] What are the main objectives of financing decision? 1. To get optimal working capital figure. 2. To get optimal capital structure. 3. To make the company exposed to high risk. 4. To keep the cost of capital lowest. 5. To make the value of share highest.
Correct Answer
(A) 1, 2, 4 and 5
[#419] Assertion (A): The important aspect of dividend policy is to determine the amount of earnings to be distributed to shareholders and the amount to be retained in the firm. Reason (R): Dividend policy of the firm has its effect on both the long term financing and the wealth of shareholders.
Correct Answer
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
[#420] Which of the following dividend promises to pay the shareholders at a future date?
Correct Answer
(B) SCRIP