Subject: financial Management II

TIME ALLOWED: 1:00

Name: ________________________________ID________________ dep.

I. SAY TRUE OR FALSE (5%)

______1. Profitability Position of the Firm is one factors that influencing dividend policy.
______2. Bond dividend is known as script dividend.
______3. Managers must keep in mind that the firm objective is to minimize share value.
______4. The day on which the board of directors declares payment of dividend is declaration date.
______5. Dividend may be distributed among the shareholders in various forms.
II. Choose the best answer from the given alternative. (5%)
______6. Which dividend is paid out in shares of stock due to increasing in financing need?
A. Stock dividend C. Bond dividend
B. Cash dividend D. Property dividend
______7. ____paid to shareholders in the form of cash.
A. Stock dividend C. Bond dividend
B. Cash dividend D. All
______8. All are/ is types of Dividend policy except?
A. Regular dividend policy C. Irregular dividend policy
B. Stable dividend policy D. Bond dividend policy
______9. Which one is Advantage of regular dividend policy?
A. Creating confidence among share C. Regular income to share holder
holder D. All
B. Stabilizing market value of shares
______10. Goal of financial management is _______
A. Maximize profit C. Manage total debt
B. Increasing market share D. All
III. MATCHING (5%)
COLOMN “A” COLOMN „‟B‟‟
-------1. Cash payment to its owners in the normal course of the business A. Special dividend
-------2. Pay regular cash dividend & an extra cash dividend B. Dividend
-------3. Is unusual or one times event & won’t be repeated C. Regular cash dividend
-------4. Return the capital originally contributed by shareholder D. Liquidating dividend
-------5. Net profits distributed among the shareholders. E. Extra dividend some
IV. Discuss & describe the following questions.(5%)
1. List at least 5 ( five ) Factors that influence dividend policy

A._______________B______________C__________D___________E_________
1|Page COST &MGT ACCOUNTING II