Working Capital Management Quiz Set 3

1. Which of the following statements is correct?

Correct! Wrong!

2. Debt to Total Assets of a firm is 0.2. The Debt-to-Equity boo would be?

Correct! Wrong!

3. In Inventory Turnover calculation, what is taken in the numerator?

Correct! Wrong!

4. Walter’s Model suggests that a firm can always increase i.e. of the share by?

Correct! Wrong!

5. “Bird in hand” argument is given by?

Correct! Wrong!

6. Residuals Theory argues that dividend is a?

Correct! Wrong!

7. Dividend irrelevance argument of MM Model is based on?

Correct! Wrong!

8. Which of the following is not true for MM Model?

Correct! Wrong!

9. Which of the following stresses on investor's preference reorient dividend than higher future capital gains?

Correct! Wrong!

10. MM Model of Dividend irrelevance uses arbitrage between?

Correct! Wrong!

11. If ke = r, then under Walter's Model, which of the following is irrelevant?

Correct! Wrong!

12. MM Model argues that dividend is irrelevant as?

Correct! Wrong!

13. Which of the following represents passive dividend policy?

Correct! Wrong!

14. In case of Gordon's Model, the MP for zero payout is zero. It means that?

Correct! Wrong!

15. Gordon's Model of dividend relevance is same as?

Correct! Wrong!

16. If 'r' = 'ke', then MP by Walter's Model and Gordon's Model for different payout ratios would be?

Correct! Wrong!

17. Dividend Payout Ratio is?

Correct! Wrong!

18. Dividend declared by a company must be paid in?

Correct! Wrong!

19. Dividend Distribution Tax is payable by?

Correct! Wrong!

20. Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%. Amount of dividend per share is?

Correct! Wrong!

Working Capital Management Quiz Set 3

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