Business Finance MCQs

Who gave the optimal cash balance technique?

According to which one of the following theories, differences in nominal interest rates will be eliminated in the exchange rate?

Arbitrage opportunity means you can earn a positive return with

Match the following. List-I (Forms of Dividend Payment) List-II (Features) a. Cash dividend 1. This type of dividend is rarely opted by companies b. Stock dividend 2. The companies whose liquidity position is sound also prefer distribution of this dividend c. Bond dividend 3. Companies which are short of cash resources for dividend payment can distribute this dividend d. Property dividend 4. It is distributed only when the company is capable of bearing the increased burden of interest on bonds

Which of the following statement(s) is/are incorrect?

How can a firm provide a margin of safety if it cannot borrow on short notice to meet its needs?

Irregular dividend policy is followed due to

The external sources of finance do not include

Since, investors can diversify away their . . . . . . . . risks, they have to be compensated only for . . . . . . . . risk.