Q. The dividend on equity shares is only paid when dividend on ---------- has already been paid
✅ Correct Answer: (B)
Preference shares
Financial Management MCQs and Notes
Q. Which is the type of dividend?
✅ Correct Answer: (A)
Cash dividend
Q. The company can reduce its capital by -------------
✅ Correct Answer: (A)
Convertible share
Q. ----------- have veto power to protect their preferential rights
✅ Correct Answer: (C)
Common preference share
Q. Which is the element of cumulative convertible preference shares?
✅ Correct Answer: (A)
The rate of dividend will be 10%
Q. 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.
✅ Correct Answer: (A)
Participating
Q. Preference shares are those shares whose holders have -------------
✅ Correct Answer: (B)
Certain preferential Rights
Q. Which ratio explains that how much portion of earning is distributed in the form of dividend
✅ Correct Answer: (B)
Pay Out Ratio
Q. If the company announces dividend then it is necessary to pay if
✅ Correct Answer: (A)
Within a certain time
Q. When the expansion of business and income is there, then the market value increases which result in ------------------
✅ Correct Answer: (A)
Capital gain by capital loss