Top 150+ Solved Strategic Financial Management MCQ Questions Answer

From 136 to 144 of 144

Q. ………is also known as dividend capitalisation model

a. Walter’s model

b. Gordon’s model

c. Modiglani & Millers model

d. None of these

  • b. Gordon’s model

Q. SVA stands for….

a. Share value accounted

b. Statutory value addition

c. Shareholder value added

d. None of the above

  • c. Shareholder value added

Q. Financial risk arises when there is an involvement of ……in the capital structure

a. Debt

b. Equity

c. Right issue

d. Bonus issue

  • a. Debt

Q. The concept of EVA has been developed by …….

a. Alfred marshal

b. Benjamin Fleming

c. Stern Steward

d. Charles H Dow

  • c. Stern Steward

Q. Use of more debt capital rather than equity capital is called……

a. Risk taking

b. Operating leverage

c. Combined leverage

d. Financial leverage

  • d. Financial leverage

Q. The policy on quantum of dividend to be distributed as dividend is termed as ……

a. Profit sharing policy

b. Appropriation

c. Dividend policy

d. Distribution policy

  • c. Dividend policy

Q. Operating leverage is not favourable when ………

a. Fixed costs are more than contribution

b. Fixed cost is less than variable cost

c. Fixed cost and variable cost are equal

d. None of the above cases

  • a. Fixed costs are more than contribution

Q. Stock dividend and bonus shares are synonymous terms.

a. True

b. False

c. none

d. all

  • a. True
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