1.

2.
3.
4.
5.
6.
7.
8.
9.

Explain the concept of dividend

What are the factors affecting the dividend decisions?
What are the forms of dividend?
Explain the Models of Dividend?
Total Return = _______________________ + _______________________
Total Risk = ______________________________ + ___________________________

Multiple Choice Questions

1. DOL stands for
]
10. a) Degree of Operation Leverage
b) Degree Of Leverage
11. c) Degree of Optional Leverage
d) None
12.
13. 2. DFL stands for
]
14. a) Degree of Financial Leverage
b) Degree of Fiscal Leverage
15. b) Degree of Fixed Leverage
d) None
16.
17. 5. Kd = _____
]
18. a) Cost of Debit b) Kettle of Debit c) Kappa of Debt d) None
19.
20. 6. In WACC, A stands for
]
21. a) Accounting b) Actual c) Accrual
d) None
22.
23. 7. In PAT, T stands for
]
24. a) Tax
b) Tariff
c) Treasure
d) None
25.
26. 8. In Ke, e stands for
]
27. a) Earning
b) Equity
c) Extent
d) None
28.
29. 9. In Kp, p stands for
]
30. a) Profit b) Present Value c) Preference
d) None
31.
32. 10. Probabilities can be assigned in _____
]

33. a) Certainty
b) Uncertainty
34. c) Risk
d) None
35.
36.
37. Fill in the Blanks
38.
39. 11. Expansion of WACC ____________ _______________ _____________ _
___________
40.
41. 12. Expansion of EBIT ____________________________________________________
42.
43. 13. Expansion of EPS____________________________________________________
44.
45. 14. Formula of EPS = ________________________________________
46.
47. 15. Formula of DOL = __________________________
48.
49. 16. Formula of DFL = __________________________
50.
51. 17. Formula of Kp = _______________________________
52.
53. 18. Formula of Kd (after tax) =__________________________________
54.
55. 19. Formula of PBT = __________________
56.
57. 20. Formula of EPS = __________________
58.
59.
60. Short Answer Questions
61.
62. 21. What Leverage?
63.
64.

65.
66. 22. What the types of Leverage?
67.
68. 23. As per the latest records of Tata Motors given under compute K
Source of Finance

Amount

After Tax Cost

(Rs.)
Debt Capital

30,00,000

Preference Share Capital 10,00,000

8.5

Equity Share Capital

20,00,000

11.5

Retained Earnings

40,00,000

10

69. 24. Walchandnagar Ltd issues 14 % irredeemable Preference Shares of the face value of
R. 100 each. Floatation costs are estimated about 5 % of the expected sale price. What is
the Kp, if Preference Shares are issued at par value?
70. 25. From the information provided in Question Number 24, compute Kp if Preference
shares are issued at (a) 10 % Premium & (b) 5 % Discount.