Corporate Finance and Policy By Daman

What is the dividend decision about?

• Employee salaries

• Profit distribution to shareholders

• Tax payment

• Advertising expenses

Which factor affects the amount of dividends paid out?

• Company logo

• Amount of earnings

• Number of employees

• Office location

Finance functions are

• Planning for funds

• Raising of funds

• Allocation of funds

• All of the above

Capital budgeting related to

• long term assets

• short term assets

• long term assets and short term assets

• fixed assets

Dividend decision is concerned with

• only distribution of dividend to shareholders

• how much to be retained in business

• how much profit earned is distributed to shareholders and how much to be retained in the business

• none of the above

Cost of capital can be divided into three item except;

• Cost of debt

• Cost of preferred share

• Cost of investment

• Cost of common share

What term is not related to cost of capital?

• rate of return

• market value of the firm

• financial statements

• investments/

  projects

The cost of equity is equal to the:

• expected market return.

• rate of return required by stockholders.

• cost of retained earnings plus dividends.

Which among the following figures is not relevant while calculating the cost of the redeemable preference shares?

• Earning Per Share (EPS)

• Discount

• Floatation Cost

• None of the above

A company Weigthed average cost of capital includes:

• The company capital structure

• The company capital structure & cost of capital

• The company cost of capital

• The company financing sources