Present value of dividends which is expected to be provided in future is classified as an

A intrinsic value of stock
B extrinsic value of stock
C intrinsic bonds
D extrinsic bonds

Correct Answer: intrinsic value of stock

Present value of dividends which is expected to be provided in future is classified as an intrinsic value of stock. The intrinsic value of a stock, on the other hand, attempts to boil out the externals and value a company on its own merits. Internal factors like a firm's products, its management, and the strength of its brands in the marketplace determine intrinsic value. Investors are interested in cash available to stockholders.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

Assume the following shares outstanding : Preferred stock, 6% , Tk. 50 per value, cumulative, 1000 shares with dividends in arrears 3 years, for 20-1, 20-2 and 20-3. Common stock, Tk. 100 per value, 2000 shares. Total dividends declared in 20-4 were Tk. 50,000. The total amount of dividends to which common stockholders are entitled is :
A Tk. 62000
B Tk. 50000
C Tk. 45000
D Tk. 38000
Type of preferred stock whose paid dividends are more than promised dividends is classified as
A non cumulative preferred stock
B cumulative preferred stock
C non participating preferred stock
D participating preferred stock
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 40
B 35
C 30
D 45
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 60 percent
B 40 percent
C 20 percent
D 10 percent
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?
A 60%
B 40%
C 20%
D 10%
Type of stock in which dividends are tied to any particular part of a firm is classified as
A dividend stock
B firm part stock
C tied stock
D tracking stock
Growth rate which is predicted by marginal investors for dividends is classified as
A expected growth rate
B annual growth rate
C past growth rate
D unexpected growth rate
Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as
A non participating preferred stock
B participating preferred stock
C non cumulative preferred stock
D cumulative preferred stock
An expected future revenue, which diverges in unconventional course of action is classified as
A partial revenue
B total revenue
C relevant revenues
D irrelevant revenues
An accounting approach, in which expected benefits exceed expected cost is classified as
A benefit approach
B cost approach
C cost-benefit approach
D accounting approach

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