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CA Inter C - 12 Dividend Policy

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

Dividend is that part of profit after tax which is _______________ to the ____________ of the company

a)

Retained, shareholders

b)

Distributed, company

c)

Distributed, Shareholders

d)

None of these

2.

Dividend policy of a firm is governed by

a)

Long term financing Decision

b)

Profit maximization decision

c)

Wealth maximization decision

d)

(a) and (c )

3.

Dividend can be distributed in which all forms

a)

Cash dividend

b)

Stock dividend (Bonus shares)

c)

Both (a) and (b)

d)

None of these

4.

Which of the following statements are correct

a)

Mature Companies will show less dividend payout

b)

Mature Companies will show high dividend payout

c)

Growth Companies will show less dividend payout

d)

(b) and (c)

5.

Which of the theories say that dividend is relevant in determining MP of Share

a)

M M Approach

b)

Walter Model

c)

Gordon Model

d)

Both (b) and (c)

6.

In Q.1 of test paper what is MP of share in (i)

a)

240

b)

220

c)

200

d)

None of these

7.

In Q.1 of test paper what is MP of share in (ii)

a)

240

b)

220

c)

200

d)

None of these

8.

In Q.1 MP is highest when dividend payout is

a)

50 %

b)

100 %

c)

25 %

d)

Nil

9.

In Q.2 what is Net Profit for Equity Shareholders

a)

30 Lacs

b)

12 Lacs

c)

18 Lacs

d)

None of these

10.

In Q.2 what is Earning per share

a)

Rs. 6

b)

Rs. 10

c)

Rs.4

d)

None of these

11.

In Q.2 what is Market price of Equity share when dividend payout is 25 %

a)

Rs. 50

b)

Rs. 37.50

c)

Rs. 150

d)

None of these

12.

In Q.2 what is Market price of Equity share when dividend payout is 50 %

a)

Rs.50

b)

Rs. 37.50

c)

Rs. 150

d)

None of these

13.

In Q.2 what is Market price of Equity share when dividend payout is 100 %

a)

Rs. 50

b)

Rs. 37.5

c)

Rs. 150

d)

None of these

14.

In Q.2 Market price of Equity share is highest when dividend payout is

a)

25 %

b)

50 %

c)

100 %

d)

75 %

15.

In Q.2 what is Market price of Equity share when dividend payout is 10 %

a)

zero

b)

300

c)

unrealistic value so not possible to calculate as assumption of Gordon is not fulfilled

d)

Not able to solve