Financial Management - Study Mode
[#741] Value of stock is Rs 900 and required rate of return is 30% then preferred dividend will be
Correct Answer
(A) Rs 270.00
Explanation
Solution: Preferred dividend = Value of stock * Required rate of return = Rs. 900 * 30% = Rs. 270.
[#742] A situation in which an outside group solicit proxies to take control of business is classified as
Correct Answer
(C) proxy fight
Explanation
Solution: A situation in which an outside group solicit proxies to take control of business is classified as proxy fight. A proxy fight is the action of a group of shareholders joining forces, in a bid to gather enough shareholder proxies to win a corporate vote.
[#743] A stock which is issued to meet specific needs of company is considered as
Correct Answer
(A) classified stock
Explanation
Solution: A stock which is issued to meet specific needs of company is considered as classified stock. Classified stock is a type of common stock that has special privileges, such as enhanced voting rights or dividend rights.
[#744] Cost of Capital for Government securities is also known as:
Correct Answer
(A) Risk-free Rate of Interest
[#745] Cost of Equity Share Capital is more than cost of debt because:
Correct Answer
(B) Equity shares have higher risk than debt