Business Studies

Business Finance

Medium

A company will tend to pay lower rate of dividend if ___

Lower amount of earnings, stable earning, potentials, no shortage of cash, easy access to capital market

Restrictive clauses imposed by lender, low access to capital market, falling short of cash, good growth opportunities available.

Short of cash, good growth opportunities available, low access to capital market, enjoys stable earnings

Unstable earnings, falling short on cash, easy access to capital market, lower amount of earning

✅ Correct Option: 2

Dividends are lower when there are restrictive lender clauses, low access to capital markets, cash shortages and good growth opportunities that need retained earnings for reinvestment. Option 2 captures all these factors together.

2025: 2 June Shift 2

"He is working out to ensure that enough funds are available at right time." The above statement indicates that Arun is involved in:

2025: 16 May Shift 1

Which of the following is not a decision in financial management?

2025: 3 June Shift 1

"The company's current composition of capital consists of 60% equity and 40% debt". Identify the concept that is being highlighted in the aforesaid statement.

2026: 21 May Shift 1

A decision to raise funds for ₹ 80,00,000 either from 10% Debenture or Equity shares is a:

2025: 3 June Shift 2

Which financial ratio will establish the relation between the cash profits generated by the operations and the total cash required for the service of the debentures and the preference share capital?

2025: 24 May Shift 1

Financial leverage is believed to be favorable if:

1. ROI is lower than cost of debt
2. ROI is higher than cost of debt
3. Debt is not easily available
4. If the interest rate is high

A company will tend to pay lower rate of dividend if ___

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