MGT502 Quiz 1 Solution and Discussion


  • Cyberian's Gold

    The pay out ratio of XYZ Company is 25%. What is its Plow back ratio? MGT201
    100%

    25%
    100%
    75%
    125%

    The measure of retained earnings is known as the retention ratio. The higher the retention ratio is, the lower the payout ratio is. For example, if a company reports a net income of $100,000 and issues $25,000 in dividends, the payout ratio would be $25,000 / $100,000 = 25%.


  • Cyberian's Gold

    If ABC Company is taking legal action against a third party for breach of contract and its lawyers are confident of winning this case as well as receiving compensation, then this would be reported as __________ by ABC Company.

    Current asset

    Long term asset

    Contingent asset

    Tangible asset


  • Cyberian's Gold

    Upward sloping yield curve implies that: MGT201
    Short-term debt instruments have a lower yield than long-term debt instruments

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  • Cyberian's Gold

    …is a series of equal payments at the beginning of each period. MGT201
    Ordinary Annuity

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    1. Ordinary Annuity
      An ordinary annuity, also known as deferred annuity, consists of a series of equal payments at the end of
      each period.

  • Cyberian's Gold

    Which of the following is the main objective of ‘Economics’? MGT201
    Profit maximization

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  • Cyberian's Gold

    Which of the following is not a Profitability ratio? MGT201
    Net Profit Margin

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  • Cyberian's Gold

    An ____________is a series of fixed payments, which might be over a fixed number of years, or over the lifetime of an individual, or both

    An annuity is a series of fixed payments, which might be over a fixed number of years, or over
    the lifetime of an individual, or both. The commonly known types of annuities we see are the monthly
    rent, and monthly mortgage payments, or insurance premiums.

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  • Cyberian's Gold

    Which of the following document/s is/are used to ? MGT201
    Cash Budget

    1. Cash Budget
    2. Pro Forma Balance Sheet
    3. Pro Forma Income Statement

    All of given


  • Cyberian's Gold

    Suppose a company has paid Rs. 50,000 a dividend to its shareholders while net income for the year was Rs. 500,000. What is the payout-ratio of the company?

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