Which of the following is not true for MM Model?

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Question:
Which of the following is not true for MM Model?

1.Share price goes up if dividend is paid

2.Share price goes down if dividend is not paid

3.Market value is unaffected by Dividend policy

4.All of the above

Posted Date:-2021-11-26 05:54:51

More MCQS Questions and answers

  1. 'Judicious use of leverage' is suggested by:
  2. A bond issue should be refunded when:
  3. A firm has Capital of 10,00,000; Sales of 5,00,000; Gross Profit of. 2,00,000 and Expenses of. 1,00,000. What is the Net Profit Ratio?
  4. A firm has EBIT of. 50,000. Market value of debt is. 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:
  5. A firm with a tax loss carryforward:
  6. A series of consecutive cash flows of equal amounts is known as:
  7. All income not paid out to creditors or preferred shareholders:
  8. All of the following are key dates associated with the declaration of a dividend except:
  9. Cost of Equity Share Capital is more than cost of debt because:
  10. Cost of Redeemable Preference Share Capital is:
  11. Debt Financing is a cheaper source of finance because of:
  12. Financial Leverage arises because of:
  13. FL is zero if:
  14. Higher OL is related to the use of higher:
  15. If a firm repurchases it own stock:
  16. If there is no inflation during a period, then the Money Cashflow would be equal to:
  17. In capital budgeting, the term Capital Rationing implies:
  18. In case of Net Income Approach, when the debt proportion is increased, the cost of debt:
  19. Indifference Level of EBIT is one at which:
  20. Marginal cost of capital is the cost of:
  21. Money Discount Rate if equal to:
  22. Operating leverage works when:
  23. Perhaps the biggest change of all in the investment industry has been:
  24. Preferred stock may be justified in that it:
  25. Return on Investment may be improved by:
  26. Rights, warrants and convertible securities behave like call options but are different from call options because:
  27. The appropriate objective of an enterprise is;
  28. The cash purchase of another company may best be viewed as:
  29. The document containing all of the legal details of the bond is:
  30. The main factor influencing foreign exchange rates is:
  31. The market required rate of return depends on:
  32. The portfolio effect analyzes:
  33. The speculative premium of a warrant is equal to
  34. The two most important measures of risk are:
  35. The yield to maturity on a bond:
  36. To an investor, the most desirable compounding period is:
  37. Under a leveraged buy-out scenario, all of the following are true except:
  38. Walter’s Model suggests for 100% DP Ratio when
  39. Which of the following argues that the value of levered firm is higher than that of the unlevered firm?
  40. Which of the following does not effect cash flows proposal?
  41. Which of the following helps analysing return to equity Shareholders?
  42. Which of the following is a risk factor in capital budgeting?
  43. Which of the following is not a relevant factor m EPS Analysis of capital structure?
  44. Which of the following is not applied in capital budgeting?
  45. Which of the following is not true for MM Model?
  46. Which of the following is not used in Capital Budgeting?
  47. Which of the following sources of funds has an Implicit Cost of Capital?
  48. Which of the following statements about securities markets is incorrect:
  49. Which of the following statements is correct:
  50. With respect to corporate bonds, all of the following are true except:
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