a. Capital profits can never be disturbed as dividends to the shareholders b. Dividends are paid out of profits and therefore, do not affect the liquidity position of the firm c. Every company should follow the policy of low dividend payment d. Walter’s model suggests that dividend payment does not affect the market price of […]
Sales of a firm are Rs. 40 lacs Variable costs Rs. 10 lacs Fixed costs Rs. 15 lacs Interest Rs. 5 lacs
Assertion (A): A low debt-equity ratio is generally recommended for newly started business Reasoning (R): During the initial years of the business, debt servicing will prove to be less burdensome.
Statement 1: When the two securities returns are perfectly positively correlated, the risk of their portfolio is just a weighted average of the individual risks of the securities. In such case, diversification does not provide risk reduction but only risk averaging. Statement 2: Total risk of a portfolio of two securities can be completely eliminated […]
Statement 1: Punctuality and team spirit among employees of an organization has great contribution in enhancing profits of the business but they do not appear as an asset in the balance sheet. Statement 2: Financial statements do not reflect the correct financial position of a business.