Consider the below mentioned statements: 1. The dividends are not cumulative for equity shareholders, that is, they cannot be accumulated and distributed in the later years. 2. Dividends are taxable. State True or False:

Related MCQs

• Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:
• Consider the below mentioned statements: 1. A company is considered to be overcapitalised when its actual capitalisation is lower than the proper capitalisation as warranted by the earning capacity 2. Both over-capitalisation and under-capitalisation are detrimental to the interests of the society. State True or False:
• Preferred shareholders' claims on assets and income of a firm come those of creditors those of common shareholders.
• Dividends are the ---------- of a company distributed amongst members in proportion to their shares
• Which of the following helps analysing return to equity Shareholders?
• ----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return
• The equity shareholders are owners of ---------------------
• When preference shareholders have a right to convert their preference shares in to equity shares after a pre-decided dare such shares are called -------- shares.
• The term optimal capital structure‘ implies that combination of external equity and internal equity at which ………
• If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?