Question 1: What do you mean by stable dividend policy? Why must it be followed?
Question 2: Differentiate between Wealth maximization and Profit maximization.
Question 3: Describe in detail about discounted cash flow methods.
Question 4: Describe the Net Income approach and Net operating income approach of capital structure.
Question 5: In brief describe the Walter’s model of dividend theory.
Question 6: What are the different methods of Inventory management methods? Describe.
Question 7: XYZ company’s equity shares are presently selling at Rs. 120 per share. The historical patterns of dividend payments per share for the years 2006–10 are shown below:
Year Dividend
Rs.
2006 10.00
2007 10,50
2008 14.00
2009 15.70
2010 16.00
You are required to compute:
a) Growth rate in dividends.
b) Cost of equity capital supposing the growth rate computed in (a) above continues.