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WorksheetsFINMAN-LONG QUIZ
Total questions: 20
Worksheet time: 15mins
It is a method that evaluates a project by measuring the time (usually expressed in years) it will take to recover the initial investments.
internal rate of return
net present value
payback method
none of the above
It is the process that a business use in evaluating and selecting major projects or investment.
capital budgeting
marketing
planning
expenditures
These are competing projects that the approval of one eliminates the others.
independent projects
mutually exclusive projects
combined projects
subdivision projects
These are the net cash inflows one expects to get when the business or project has already started.
cash returns
cash refund
cash receipts
cash disbursement
This refers to the difference between the present value of cash inflows and the net present value of cash outflows over a period.
internal rate of return
payback method
net present value
none of the above
If the net present value is (a) , the project should be accepted.
If the net present value is (a) , the project should be rejected.
When the cash returns are (a) , the payback period is computed by adding the cash returns until the total is equal to the investment.
Which of the following is true about dividends?
It may be distributed among the shareholders in the form of cash or stock.
A distribution to shareholders out of profits or reserves available for this purpose.
It refers to the business concerns net profits distributed among the shareholders.
It can be termed as appropriated retained earnings.
It is paid periodically out the business concerns Earnings After Interest and Taxes. Common and popular type of dividend.
Cash dividend
Stock dividend
Bond dividend
Property dividend
These dividends are paid in the form of some assets other than cash. It will distributed under the exceptional circumstance.
Cash dividend
Stock dividend
Bond dividend
Property dividend
It is also known as script dividend. If the company does not have sufficient funds to pay cash dividend, the company promises to pay the shareholder at a future specific date with the help of this.
Cash dividend
Stock dividend
Bond dividend
Property dividend
It is paid in the form of the company shares due to raising of more finance. Under this type, cash is retained by the business concern.
Cash dividend
Stock dividend
Bond dividend
Property dividend
It determines the amount of profit to be distributed among shareholders and amount of profit to be treated as retained earnings for financing its long term growth.
Capital budgeting
Capital decision
Dividend Decision
Financial Management
This factor in determining dividend policy states that if the firms have high liquidity, the firms can provide cash dividend otherwise, they have to pay stock dividend.
Profitable Position of the Firm
Liquidity Position
Growth Rate of the Firm
Uncertainty of Future Income
Which of the following is not correct about Dividend Policy?
It depends upon the nature of the firm, type of shareholder and profitable position.
It is an indicator if a company is making a profit.
On the basis of the dividend declaration by the firm, the dividend policy may be Regular, Irregular, Stable or No dividend at all.
Dividends are often part of a company's strategy. However, they are under no obligation to repay shareholders using dividends.
This dividend policy means payment of certain minimum amount of dividend regularly.
Regular dividend policy
Stable dividend policy
Irregular dividend policy
No dividend policy
Dividend payable at the usual rate is called as _______________________________. This type of policy is suitable to the small investors.
Regular dividend policy
Stable dividend policy
Irregular dividend policy
No dividend policy
Two investment proposals have been made and the following data are given:
What is the payback period of Project X?
1.67 years
2.67 years
3 years
None of the above
Two investment proposals have been made and the following data are given:
What is the payback period of Project Y?
1.67 years
2.67 years
3 years
None of the above
