a. Dividend payout ratio refers to that portion of total earnings which is distributed among equity shareholder of the company b. ‘Bird in hand’ argument is given by Gordon’s model c. MM model suggest that the dividend payment is very relevant for value of the firm d. Walter’s Model Suggests that dividend payment does […]
Methods Formula a) ARR Method i) Present value of Cash Inflows – Present value of Cash Outflow b) Pay back period Method ii) Present value of Cash Inflow ÷ Present value of Cash Outflow c) NPV Method iii) Average Income ÷ Average Investment d) Probability Index iv) Investment ÷ Annual Cash Inflows
a. Pay – back period method considers all cash flow of a project b. Pay – back period method concerns more with recovery of cast than profitability c. Net Present Value represents net addition to the wealth of shareholders d. Accounting Rate of Return method incorporates risk as well as time value of money Choose […]
List I List II a) Qualified Report i) Auditor Duty b) Examine Valuation and Disclosure ii) Auditor Liabilities c) Access to records of company and its subsidiaries iii) Auditor Report d) Mis – statement in prospectus in company issue of Capital iv) Auditor Right