Lalit; an experienced stock broker advised his client Prabhu to invest in the shares of Blue Angel Limited; as the company has declared high dividends since an increase in dividend is perceived as a good news and stock prices react positively to it. Identify the related factor of dividend decision being described in the above lines.

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Question:
Lalit; an experienced stock broker advised his client Prabhu to invest in the shares of Blue Angel Limited; as the company has declared high dividends since an increase in dividend is perceived as a good news and stock prices react positively to it. Identify the related factor of dividend decision being described in the above lines.

1.Tax rate

2.Growth prospects

3.Stock market reactions

4.Access to capital markets

Posted Date:-2021-02-22 08:13:15

More MCQS Questions and answers

  1. A company is likely to declare higher dividends if
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  5. Arrange the following steps involved in the process of financial planning in the correct sequence.
  6. As the financial leverage of a company increases; it leads to
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  8.  The working capital requirement of a business is not likely to be high when?
  9.  Under which of the following situations a company should not issue debt capital?
  10. Dev has two projects A and B in hand. The same amount of risk is involved in both the projects. If the rate of return of project A and B is 20% and 15% respectively; then under normal circumstance; which of the two projects is likely to be selected?
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  13. If a company is borrowing funds @ 10% and the tax rate is 30%; the after-tax cost of debt is only
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  20. Lalit; an experienced stock broker advised his client Prabhu to invest in the shares of Blue Angel Limited; as the company has declared high dividends since an increase in dividend is perceived as a good news and stock prices react positively to it. Identify the related factor of dividend decision being described in the above lines.
  21. Name the decision which affects both the profitability and the financial risk.
  22. Name the financial decision which relates to disposal of profits.
  23. Name the process that enables the management to foresee the fund requirements; both the quantum as well as the timing.
  24. Primary aim of financial management is to
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  33. This decision determines the overall cost of capital and the financial risk of the enterprise.
  34. This decision is about the quantum of finance to be raised from various long-term sources.
  35. This decision relates to how the firm’s funds are invested in different assets;
  36. Under which of the following circumstances a company is not likely to declare a higher dividend?
  37. Under which of the following circumstances the fixed capital requirement of a business is not likely to be high?
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