WorksheetsFM-II A
Total questions: 10
Worksheet time: 3mins
Companies which pay huge amount of dividend are those companies which are young and in growing stage
True
False
The MM approach of Dividend policy suggests that dividend has no impact on the value of the firm
True
False
In India dividend can only be paid from
Profits including depreciation
Profit of the current year
Profit from previous years
Profit from both current year and previous year
Higher the current asset higher will be the shortage cost and lower will be the carrying cost
True
False
Accounts Payable period + Cash Cycle=
Operating cycle
Cash cycle
Inventory period
Accounts receivable period
When the credit term is 4% discount if payment is done within 5 days or else the credit period allowed is 30 days is written in a bill as
5/4 net 30
30/5 net 4%
4/5 net 30
None of the above
If the retention ratio is 70% , the market price of the share is Rs. 100, earning per share is Rs. 30 then the dividend paid is---
Rs. 70
Rs. 9
Rs. 21
Rs. 30
The dividend policy that gives more significance to current payment of dividend over future payment is
MM Hypothesis
Walter Model
Gordon Model
None of the Above
According to walter model, if r<k, then the optimum payout ratio should be
0%
50%
100%
75%
When a company increases its accounts receivables its accounts receivable period will
increase
decrease
constant
indifferent
