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Which of the following statement(s) is/are false?
1. Capital profits can never be distributed as dividends to the shareholders.
2. Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
3. Every company should follow the policy of low dividend payment.
4. Walter's model suggests that dividend payment dose not affect the market price of the share.
Choose the correct answer

Which of the following statement(s) is/are false?
1. Capital profits can never be distributed as dividends to the shareholders.
2. Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
3. Every company should follow the policy of low dividend payment.
4. Walter's model suggests that dividend payment dose not affect the market price of the share.
Choose the correct answer Correct Answer All of the above

Related Questions

Which of the following statements is/are false? (i) Capital profits can never be distributed as dividends to the shareholders. (ii) Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm. (iii) Every company should follow the policy of low dividend payment. (iv) Walter’s model suggests that dividend payment does not affect the market price of the share. Choose the correct answer from the code given below:
Which of the following statements are correct?  a) Dividend payout ratio refers to that portion of total earnings which is distributed among equity shareholders of the company  b) 'Bird in hand' argument is given by Gordon's model  c) MM model suggest that dividend payment is very relevant for value of the firm  d) Walter's Model suggests that dividend payment does not affect the market price of the share 
Which of the following statements are correct?
1. Dividend payout ratio refers to that portion of total earnings which is distributed among equity shareholders of the company
2. 'Bird in hand' argument is given by Gordon's model
3. MM model suggest that dividend payment is very relevant for value of the firm
4. Walter's Model suggests that dividend payment does not affect the market price of the share
The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: The domestic equity market has become supervolatile  and converted the psychology of every market participant into fear. Greed and fear continue to alternate in the market, like the two sides of a coin. To a seasoned player, there seems to be nothing new as such instances of panic-selling often occur time and again. Why? Arguments: I. Since demonetisation, herd mentality had jacked up financials, banks and NBFC stocks to great heights on the pretext of financial inclusion and formalisation of the economy. This caused the financials gain disproportionate share in Nifty50 at 35 per cent of the free float market capitalisation, which was unheard of in the past.  II. The domestic market seems to be deeply oversold and can rebound on any good news. The Nifty50 has taken long-term support at the three-year trend line, which makes a case for the correction to near its end. III. Investors, therefore, should not panic and sell off shares. Instead they should do the reverse and gather the courage to pump in more money into the market by picking quality stocks or investing in ETFs for more stable returns. 
Consider the following statements.
Assertion (A): A well-developed money market is the basis for an effective monetary policy. It is in the money market that the Central Bank comes into contact with the financial sectors of the economy as a whole and it is through the liquidity in the market that influences the cost and availability of credit.
Reasoning (R): A well-organized money market is an essential condition for the successful operation of the Central Banking policies, and for holding the conditions of liquidity within the bounds of what the monetary authorities consider desirable.
Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R).  Assertion (A): Tax should not be charged on dividend income from the shareholders  Reason (R): Some economists are of the opinion that when tax has already been paid on the profit of the company and balance is distributed as dividend to the owners, tax need not be levied on them  In the light of the above two statements, choose the correct answer from the options given below  1. Both A) and R) true and R) is the correct explanation of A) 2. Both A) and R) true but R) is NOT the correct explanation of A) 3. A) is true but R) is false  4. A) is false but R) is true
A company wishes to pay out all available profits as dividends. Net profit is Tk. 26,600. There are 20,000 preference shares of Tk. 1 each with dividend at a rate of 8% and 50,000 ordinary shares of Tk. 1 each. Tk. 5000 is to be transferred to General Reserve. What ordinary dividends are to be paid in percentage?
A company wishes to pay out all available profits as dividends net profit is TA. 26,600 . There are 20,000 Preference shares of TA. I each with dividend at a rate of 8% and 50,000 Ordinary shares of TA. I each . Tk.5,000 is to be transferred to General Reserve. What Ordinary dividends are to be paid , in perc
A company wishes to pay out all available profits as dividends. Net profit is TA. 26,600. There are 20,000 Preference shares of TA. I each with dividend at a rate of 8%, and 50,000 Ordinary shares of TA. I each, Tk, 5,000 is to be transferred to General Reserve. What Ordinary dividends are to paid, in percentage?
Match List I with List II: List I (Method) List II (Purchase consideration) (A) Lump-sum payment method (I) Calculated by adding up the total amount (money value) of existing shares, preference shares and cash received from the purchasing company for the shareholders of the vendor company. (B) Net Assets Method (II) On the basis of ratio in which the shares of the transferee company are to be exchanged for the shares of the transferor company. (C) Net Payment Method (III) The amount to be paid by the transferee company to transferor company for amalgamation of its business. (D) Swap Ratio Method (IV) Arrived at by adding the agreed value of assets taken over and deducting there from the agreed values of liabilities. Choose the correct answer from the options given below: