Question : Profit in an organization is equal to Rs. 500000 after interest, tax, and dividends on preferred shares. There are 50,000 equity shares and a 50% dividend payout ratio. What amount of dividend payment will there be?
Option 1: Rs. 5
Option 2: Rs. 25
Option 3: Rs. 10
Option 4: Rs. 12
Correct Answer: Rs. 5
Solution : Earning Per Share = 5,00,000/50,000 = 10 Dividend payout = Earning Per Share× dividend payout rate = 5 Dividend payout = 10 × 50% = 5 Hence option 1 is the correct answer.
Question : 9% preference shares of 10 each Rs. 5,00,000, Equity shares of 10 each Rs.1,20,000, Profit after tax Rs.4,20,000, Equity dividend paid 20%, Market price of equity shares Rs.25 each. What will be the earnings per share?
Question : The Debt-Equity Ratio of a Company is 1:2. State the transaction by which it would increase to 3:1.
Question : A man invests Rs. 44,000 in some shares in the ratio 1 : 4 : 5 which pay dividends of 10%, 15%, and 25% on his investment for one year, respectively. His total dividend income is:
Question : Which of the following statements is true?
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