31. Which combination represents the assumptions of Walter's Dividend Model?
I. The company has a very long or perpetual life.
II. All earnings are either reinvested internally or distributed as dividend.
III. There is no floatation cost for the company.
IV. The cost of capital of the company is constant.
I. The company has a very long or perpetual life.
II. All earnings are either reinvested internally or distributed as dividend.
III. There is no floatation cost for the company.
IV. The cost of capital of the company is constant.
32. Identity the incorrect statement from the following:
33. Operating leverage and financial leverage of a firm are 3 and 2, respectively. If the sale increases by 6%, then earnings before tax will rise by
34. The following is an example of the core principle 'information is the basis for decisions.'
35. The maturity period of a commercial paper usually ranges from
36. Which method of stock repurchase occurs when the buyer purchases securities through a brokerage house?
37. Which of the following is the critical assumption of Walter's Model?
38. A portfolio having two risky securities can be turned risk less, if
39. The investors may be willing to pay a premium for stable dividends because of the informational content of . . . . . . . ., the desire of investors for . . . . . . . ., and certain . . . . . . . .
40. Indicate the correct combination of discounting techniques from the following techniques of capital budgeting decision.
I. Profitability Index
II. Net Present Value
III. Accounting Rate of Return
IV. Internal Rate of Return
I. Profitability Index
II. Net Present Value
III. Accounting Rate of Return
IV. Internal Rate of Return
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