They have all the knowledge about every university. The people working here are way too excellent and they even don’t charge much. (All of the statements refer to book, and not market, values.). First time I got noticed by the teachers in the class of 100 students that too in a good way. A) The firm's EPS will be higher after the repurchase than it will be after the dividend. It avoids the problem of computing the required rate of return for each investment proposal. Puckett Products is planning for $2.9 million in capital expenditures next year. Cash flow example from a financing activity is (A) Payment of Dividends (B) Receipt of Dividend on Investment (C) Cash Received from Customers (D) Purchase of Fixed Asset. I enjoyed lots of these benefits, anybody who is using this site for the first time, I assure them that you will never go for any other medium once you get in touch with the teachers here. See answer. B) Yes, the investor should create a homemade dividend by selling $100 worth of stock. Suppose this firm declares a 100% (large) stock dividend. If net income for the year is $200,000 and the dividend per share is $1.50, what is the retention ratio for the firm? Just click on the button next to each answer and you'll get immediate feedback. You own stock in a firm that has 3 million shares outstanding. Dividend Policy MCQ Under NYSE rules, if you bought 500 shares of the stock on Friday, January 4 for $7.50 per share, how much will you receive in dividends? The current stock price is $18 per share. On the balance sheet, additional paid-in capital is $320,000, while retained earnings is $780,000. Topic: LOW DIVIDEND PAYOUT RATES . Financial Management MCQ is important for exams like CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other accounts department exam. A) Dividends are never a liability of the firm. A) Yes, the investor should create a homemade dividend by selling $200 worth of stock. C) decrease the owners' equity of the firm, D) make the firm's stock more desirable to the average investor, E) benefit shareholders since cash dividends are irrelevant. They are very hardworking. In customer service, the person assured me about 0 copying. 1. The tutoring class from your site came out to be so effective that now I can confidently solve even the difficult question within some seconds. Assume the firm uses the $30,000 excess cash to buy back stock at $8 per share. If the firm declares a 25% (small) stock dividend, what happens to additional paid-in capital on the balance sheet? Answer:a. Finance mcqs for nts, Finance mcqs, Finance mcqs for nts test pdf,Finance mcqs in urdu, Finance mcqs with answers in urdu pdf, pak studies mcqs for nts test with answers. Answer: D. 7. Analyse your skils set with MCQ on Dividend Policy on stock dividend, stock splits, bonus shares and ordinary shares.. Boost your skills Now! dividend policy, you can create the cash ‡ows you prefer by selling enough shares at the end of the …rst year toreceive the extra$9. These quiz objective questions are helpful for competitive exams. We provide all important questions and answers from chapter Company Law. Explain the term cash dividend. Air Act C. Water Act D. Noise Pollution Rule E. None of these A firm has a target debt/equity ratio of 1.25. 1360, how much does he invest in 12% stock at Rs. Socio-economic aspects - Population - MCQs with answers - Part 1 1. © copyright 2003-2020 Study.com. dividends per share divided by earnings per share. Capital budget $4,000 Debt 55% Net income (NI) $4,700. 5500; Rs 4000 See answer. they always keep checking the grading patterns and assessments. 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