1501. Which of the following stresses on investor’s preference reorient divident than higher future capital gains?
A. Walter’s model
B. Residual theory
C. Gordon’s Model *
D. MM Model
1502. MM model of dividend irrelevance uses arbitrage between______.
A. Dividend and bonus
B. Dividend and capital issue *
C. Profit and Investment
D. None of the above
1503. If ke= r, Then under walter’s model, which of the following is irrelevant ?
A. Earnings per share
B. Dividend per share
C. Dp Ratio *
D. None of the above
1504. MM model argues that dividend is irrelevant as _________.
A. The value of the firm depends upon earning power *
B. The investors buy shares for capital gain
C. Dividend is payable after deciding the retained earnings
D. Dividend is a small amount
1505. Which of the following represents passive dividend policy?
A. That dividend is paid as a % of EPS,
B. That dividend is paid as a constant amount
C. That dividend is paid after retaining profits for reinvestment *
D. All of the above
1506. In case of Gordon’s model, the MP for zero payout is zero .It means that ___________.
A. Shares are not traded
B. Shares available free of cost
C. Investors are not ready to offer any price *
D. None of the above
1507. Gordon’s model of dividend relevance is same as ___________.
A. No-growth Model of equity
B. Constant growth model of equity valuation *
C. Price-Earning Ratio
D. Inverse of price Earnings ratio
1508. If ‘r’ = ‘ke’ Than MP by walter’s model and Gordon’s Model for different payout ratios would be __________.
A. Unequal
B. Zero
C. Equal *
D. Negative
1509. Dividend payout ratio is __________.
A. PAT / Capital
B. DPS / EPS *
C. Pref.Dividend / PAT
D. Pref. Dividend / Equity Dividend
1510. Dividend declared by a company must be paid to its registered shareholders or to their order within such period and in such manner as may be specified in terms of _______.
A. Section 239 of the companies act 2017
B. Section 240 of the companies act 2017
C. Section 241 of the companies act 2017
D. Section 242 of the companies act 2017 *