UGC NET Dividend decision Previous Year Questions
JRFSmart holds 12 previous-year questions on Dividend decision from UGC NET Commerce (Paper 2), filed under Unit 4: Business Finance, drawn from 11 of the 22 exam papers in the bank (2018–2025). Each question can be practised with a full explanation and shows how often NTA has returned to the same idea.
What is asked in Dividend decision
The questions in this topic fall under these subtopics, ordered by how many previous-year questions each has.
| Subtopic | Questions |
|---|---|
| Dividend theories | 2 |
| Dividend policy statements | 1 |
| Walter's model | 1 |
| Residual theory of dividend | 1 |
| Stock split | 1 |
| MM dividend irrelevance - assumptions | 1 |
| Gordon's dividend model - assumptions | 1 |
| Modigliani-Miller dividend irrelevance | 1 |
| Walter's model - price per share | 1 |
| Gordon's dividend-capitalization model | 1 |
| Walter's model for a declining firm | 1 |
NTA repeat analysis
Dividend decision appears in 11 of 22 papers (50%), which JRFSmart rates as high frequency.
Sample previous-year questions
According to Walter's Model of Dividend, market value of the share of a declining firm (having r < ke) will be maximum at :
Which of the following are the assumptions of Gordon's dividend-capitalization model? A. No taxes B. Cost of capital is less than the growth rate C. No internal financing D. Constant retention E. Constant cost of capital Choose the correct answer from the…
The dividend-irrelevance theory of Miller and Modigliani depends on which one of the following relationships between investment policy and dividend policy.
The earning per share for Avanti corporation is Rs. 4.0. The rate of return on investments is 16 per cent and the return required by its shareholders is 12 percent. What will be the price per share as per the Walter model, if the payout ratio is 40 per cent?
The purpose (aim) of stock split is to A. Increase the number of shares B. Reduce market price per share C. Arrest share price decline D. Encourage wider public ownership E. Reduce impact cost Choose the correct answer from the options given below.
The MM hypothesis of the irrelevance of dividends is based on which of the following critical assumptions? A. Investors are able to forecast future prices and dividends with certainty B. The firm has a given investment policy which does not change C. All…
Which of the following are key assumptions of Gordon's Dividend Model? (a) Ke > br (b) r and Ke are changing. (c) The firm is not all-equity firm. (d) The firm has perpetual life. (e) The retention ratio, once decided, is constant. Choose the correct answer…
According to the theory of dividend, the firm should follow its investment policy of accepting all positive NPV projects and paying out dividends if and only if, funds are available:
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