B:-Statements (I) and (II) are correct
C:-Statements (Il) and (III) are correct
D:-Statements (1) and (Ill) are correct
Correct Answer:- Option-C

Question21:-In case of Companies enjoying stable growth rate and stable rate of
dividend which of the following dividend approach to be more suitable to use?

A:-Dividend Price approach
B:-Dividend Price plus growth approach
C:-E/P ratio approach

D:-Realized yield approach

Correct Answer:- Option-D

Question22:-Which of the following are the effects of Share split?
(|) | Number of outstanding shares increases

(11) Future earnings per share will increase

(॥॥) Price of the share increases

(1൧ No cash inflow involved

A:-Statement (I) and (Il) are correct
B:-Statement (Il) and (III) are correct
C:-Statement (III) and (IV) are correct
D:-Statement (I) and (IV) are correct
Correct Answer:- Option-D

Question23:-Which of the following are the assumptions of Gordon's model of
dividend decisions?

‎The Internal rate of return is constant‏ (ا)

‎(11) The cost of capital of the firm is constant

‎(111) The dividend per share is assumed to be constant

‎(IV) The growth rate of the firm is constant

‎(൧ _ Firms cost of capital is assumed to be greater than growth rate

‎A:-Statements (1), (II), (III) and (IV) are correct

‎B:-Statements (II), (Ill), (IV) and (V) are correct
C:-Statements (1), (Ill), (IV) and (V) are correct
D:-Statements (1), (II), (IV) and (V) are correct

‎Correct Answer:- Option-D

‎Question24:-When a firm uses more short term financing, then that required to
finance the temporary or variable current assets the firm is said to follow :

‎A:-An aggressive approach of financing
B:-An conservative approach of financing
C:-Hedging approach of financing
D:-Matching approach of financing
Correct Answer:- Option-A