QUESTION 2

Which of the following capital budgeting techniques ignores firms objective and doesnt consider all the cash flows of a new project?

A.

Profitability index

B.

NPV

C.

IRR and Payback period

D.

Payback period

E.

Net present value and IRR

QUESTION 3

A corporation generated Earnings AED 20,000 and decided a pay-out-ratio 15%. Then, the total dividends paid to investors are

A.

AED 13,333

B.

AED 3,000

C.

more than AED 20,000

D.

AED 17,391.30

E.

AED 75

QUESTION 4

A company has shares outstanding 4,500,000. The earnings per share are 4.23 euros, and the cash dividend per share is 1.80 euros. The cash dividend payout ratio is:

A.

42.6%

B.

4.26%

C.

2.35%

D.

2,5000,000

E.

7.614%