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Dividend Policy MCQs 2026

63 questions with detailed answers · 25 from past papers · 7 quiz batches available

📚 Finance Mcqs 📄 25 Past-Paper Qs ✓ Free · No Login Needed
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Read each question, think about the answer, then click Show Answer to reveal the correct option and explanation. Load 10 at a time so it stays manageable — perfect for one-topic study sessions on the bus or during a break.

Page 1 of 1 Questions 1–10 of 63
  1. Q1 medium

    Dividend policy scenario 40: earnings per share Rs 62.7 and payout ratio 55%. Dividend per share is Rs

    1. A 62.7
    2. B 28.2
    3. C 34.5
    4. D 69.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  2. Q2 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 12: earnings per share Rs 26.3 and payout ratio 25%. Dividend per share is Rs

    1. A 26.3
    2. B 19.7
    3. C 13.2
    4. D 6.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  3. Q3 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 38: earnings per share Rs 58.1 and payout ratio 45%. Dividend per share is Rs

    1. A 58.1
    2. B 32.0
    3. C 52.2
    4. D 26.1
    💡 Explanation:

    DPS = EPS × payout ratio.

  4. Q4 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 29: earnings per share Rs 44.4 and payout ratio 55%. Dividend per share is Rs

    1. A 24.4
    2. B 44.4
    3. C 20.0
    4. D 48.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  5. Q5 medium

    Dividend policy scenario 28: earnings per share Rs 49.1 and payout ratio 50%. Dividend per share is Rs

    1. A 49.1
    2. B 24.5
    3. C 24.6
    4. D 49.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  6. Q6 easy

    Dividend policy scenario 27: earnings per share Rs 46.8 and payout ratio 45%. Dividend per share is Rs

    1. A 21.1
    2. B 46.8
    3. C 25.7
    4. D 42.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  7. Q7 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 26: earnings per share Rs 44.5 and payout ratio 40%. Dividend per share is Rs

    1. A 44.5
    2. B 17.8
    3. C 26.7
    4. D 35.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  8. Q8 medium

    Dividend policy scenario 25: earnings per share Rs 42.2 and payout ratio 35%. Dividend per share is Rs

    1. A 42.2
    2. B 27.4
    3. C 14.8
    4. D 29.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  9. Q9 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 24: earnings per share Rs 39.9 and payout ratio 30%. Dividend per share is Rs

    1. A 39.9
    2. B 27.9
    3. C 24.0
    4. D 12
    💡 Explanation:

    DPS = EPS × payout ratio.

  10. Q10 easy

    Dividend policy scenario 23: earnings per share Rs 37.6 and payout ratio 25%. Dividend per share is Rs

    1. A 37.6
    2. B 9.4
    3. C 28.2
    4. D 18.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  11. Q11 medium

    Dividend policy scenario 22: earnings per share Rs 35.3 and payout ratio 75%. Dividend per share is Rs

    1. A 26.5
    2. B 35.3
    3. C 8.8
    4. D 53.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  12. Q12 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 21: earnings per share Rs 40.0 and payout ratio 70%. Dividend per share is Rs

    1. A 28
    2. B 40.0
    3. C 12.0
    4. D 56.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  13. Q13 easy

    Dividend policy scenario 20: earnings per share Rs 37.7 and payout ratio 65%. Dividend per share is Rs

    1. A 37.7
    2. B 13.2
    3. C 49.0
    4. D 24.5
    💡 Explanation:

    DPS = EPS × payout ratio.

  14. Q14 medium

    Dividend policy scenario 19: earnings per share Rs 35.4 and payout ratio 60%. Dividend per share is Rs

    1. A 35.4
    2. B 14.2
    3. C 42.4
    4. D 21.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  15. Q15 easy

    Dividend policy scenario 14: earnings per share Rs 30.9 and payout ratio 35%. Dividend per share is Rs

    1. A 30.9
    2. B 10.8
    3. C 20.1
    4. D 21.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  16. Q16 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 18: earnings per share Rs 33.1 and payout ratio 55%. Dividend per share is Rs

    1. A 18.2
    2. B 33.1
    3. C 14.9
    4. D 36.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  17. Q17 easy

    Dividend policy scenario 30: earnings per share Rs 46.7 and payout ratio 60%. Dividend per share is Rs

    1. A 46.7
    2. B 18.7
    3. C 56.0
    4. D 28
    💡 Explanation:

    DPS = EPS × payout ratio.

  18. Q18 medium

    Dividend policy scenario 31: earnings per share Rs 49.0 and payout ratio 65%. Dividend per share is Rs

    1. A 49.0
    2. B 17.1
    3. C 31.9
    4. D 63.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  19. Q19 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 32: earnings per share Rs 51.3 and payout ratio 70%. Dividend per share is Rs

    1. A 51.3
    2. B 35.9
    3. C 15.4
    4. D 71.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  20. Q20 easy

    Dividend policy scenario 33: earnings per share Rs 53.6 and payout ratio 75%. Dividend per share is Rs

    1. A 40.2
    2. B 53.6
    3. C 13.4
    4. D 80.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  21. Q21 medium

    Dividend policy scenario 34: earnings per share Rs 55.9 and payout ratio 25%. Dividend per share is Rs

    1. A 14
    2. B 55.9
    3. C 41.9
    4. D 28.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  22. Q22 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 35: earnings per share Rs 58.2 and payout ratio 30%. Dividend per share is Rs

    1. A 58.2
    2. B 17.5
    3. C 40.7
    4. D 35.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  23. Q23 easy

    Dividend policy scenario 36: earnings per share Rs 53.5 and payout ratio 35%. Dividend per share is Rs

    1. A 53.5
    2. B 34.8
    3. C 37.4
    4. D 18.7
    💡 Explanation:

    DPS = EPS × payout ratio.

  24. Q24 medium

    Dividend policy scenario 37: earnings per share Rs 55.8 and payout ratio 40%. Dividend per share is Rs

    1. A 22.3
    2. B 55.8
    3. C 33.5
    4. D 44.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  25. Q25 Past Paper · PPSC/FPSC/NTS easy

    Stable dividend policy pays

    1. A zero dividends in profitable years
    2. B relatively steady dividends even when earnings fluctuate
    3. C dividends only from asset sales
    4. D random payouts unrelated to earnings
    💡 Explanation:

    Stability signals confidence.

  26. Q26 hard

    Legal reserve requirements in Pakistani companies law context relate to

    1. A foreign exchange hedging only
    2. B PSX listing fees only
    3. C restrictions on dividend from capital and minimum profit allocation
    4. D SBP reserve requirements for banks
    💡 Explanation:

    Companies Act governs distributable profits.

  27. Q27 Past Paper · PPSC/FPSC/NTS medium

    Share repurchase is economically similar to

    1. A issuing new equity
    2. B increasing long-term debt only
    3. C cash dividend for shareholder wealth in perfect markets
    4. D capitalizing advertising expense
    💡 Explanation:

    Both return cash to shareholders.

  28. Q28 medium

    Stock dividend (bonus shares) in Pakistan

    1. A reduces total shareholders equity
    2. B is always taxable cash dividend
    3. C eliminates retained earnings entirely
    4. D increases shares outstanding without immediate cash outflow
    💡 Explanation:

    Bonus shares capitalize reserves.

  29. Q29 Past Paper · PPSC/FPSC/NTS medium

    Clientele effect suggests firms attract

    1. A investors whose tax and income preferences match payout policy
    2. B only day traders exclusively
    3. C only creditors
    4. D only auditors
    💡 Explanation:

    Investors sort by dividend preference.

  30. Q30 medium

    Bird-in-the-hand theory favors

    1. A higher dividends because investors prefer certain cash now
    2. B zero dividends always
    3. C only stock splits
    4. D only bond financing
    💡 Explanation:

    Certain dividends reduce perceived risk.

  31. Q31 Past Paper · PPSC/FPSC/NTS hard

    Dividend irrelevance theory (Modigliani-Miller) assumes

    1. A high asymmetric information always
    2. B no taxes, no flotation costs, and perfect markets
    3. C mandatory 50% payout ratio
    4. D prohibited share repurchases
    💡 Explanation:

    MM dividend irrelevance under idealized assumptions.

  32. Q32 easy

    Dividend policy scenario 11: earnings per share Rs 24.0 and payout ratio 75%. Dividend per share is Rs

    1. A 18
    2. B 24.0
    3. C 6.0
    4. D 36.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  33. Q33 medium

    Dividend policy scenario 10: earnings per share Rs 21.7 and payout ratio 70%. Dividend per share is Rs

    1. A 21.7
    2. B 6.5
    3. C 30.4
    4. D 15.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  34. Q34 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 9: earnings per share Rs 19.4 and payout ratio 65%. Dividend per share is Rs

    1. A 19.4
    2. B 12.6
    3. C 6.8
    4. D 25.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  35. Q35 easy

    Dividend policy scenario 8: earnings per share Rs 17.1 and payout ratio 60%. Dividend per share is Rs

    1. A 17.1
    2. B 6.8
    3. C 10.3
    4. D 20.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  36. Q36 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 7: earnings per share Rs 21.8 and payout ratio 55%. Dividend per share is Rs

    1. A 21.8
    2. B 9.8
    3. C 24.0
    4. D 12
    💡 Explanation:

    DPS = EPS × payout ratio.

  37. Q37 easy

    Dividend policy scenario 6: earnings per share Rs 19.5 and payout ratio 50%. Dividend per share is Rs

    1. A 19.5
    2. B 9.7
    3. C 9.8
    4. D 19.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  38. Q38 easy

    Dividend policy scenario 5: earnings per share Rs 17.2 and payout ratio 45%. Dividend per share is Rs

    1. A 17.2
    2. B 9.5
    3. C 7.7
    4. D 15.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  39. Q39 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 4: earnings per share Rs 14.9 and payout ratio 40%. Dividend per share is Rs

    1. A 6
    2. B 14.9
    3. C 8.9
    4. D 12.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  40. Q40 easy

    Dividend policy scenario 3: earnings per share Rs 12.6 and payout ratio 35%. Dividend per share is Rs

    1. A 12.6
    2. B 8.2
    3. C 4.4
    4. D 8.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  41. Q41 easy

    Dividend policy scenario 2: earnings per share Rs 10.3 and payout ratio 30%. Dividend per share is Rs

    1. A 10.3
    2. B 7.2
    3. C 3.1
    4. D 6.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  42. Q42 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 1: earnings per share Rs 8.0 and payout ratio 25%. Dividend per share is Rs

    1. A 2
    2. B 8.0
    3. C 6.0
    4. D 4.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  43. Q43 easy

    Constant payout ratio policy sets dividends as

    1. A fixed rupee amount regardless of profit
    2. B fixed percentage of earnings each period
    3. C zero percent always
    4. D percentage of total assets
    💡 Explanation:

    Payout ratio links dividends to profit.

  44. Q44 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 57: earnings per share Rs 80.8 and payout ratio 30%. Dividend per share is Rs

    1. A 24.2
    2. B 80.8
    3. C 56.6
    4. D 48.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  45. Q45 easy

    Dividend policy scenario 56: earnings per share Rs 85.5 and payout ratio 25%. Dividend per share is Rs

    1. A 85.5
    2. B 64.1
    3. C 42.8
    4. D 21.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  46. Q46 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 55: earnings per share Rs 83.2 and payout ratio 75%. Dividend per share is Rs

    1. A 83.2
    2. B 62.4
    3. C 20.8
    4. D 124.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  47. Q47 easy

    Dividend policy scenario 54: earnings per share Rs 80.9 and payout ratio 70%. Dividend per share is Rs

    1. A 80.9
    2. B 24.3
    3. C 56.6
    4. D 113.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  48. Q48 easy

    Dividend policy scenario 53: earnings per share Rs 78.6 and payout ratio 65%. Dividend per share is Rs

    1. A 51.1
    2. B 78.6
    3. C 27.5
    4. D 102.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  49. Q49 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 52: earnings per share Rs 76.3 and payout ratio 60%. Dividend per share is Rs

    1. A 76.3
    2. B 30.5
    3. C 91.6
    4. D 45.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  50. Q50 easy

    Dividend policy scenario 51: earnings per share Rs 74.0 and payout ratio 55%. Dividend per share is Rs

    1. A 74.0
    2. B 40.7
    3. C 33.3
    4. D 81.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  51. Q51 easy

    Dividend policy scenario 50: earnings per share Rs 71.7 and payout ratio 50%. Dividend per share is Rs

    1. A 35.9
    2. B 71.7
    3. C 35.8
    4. D 71.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  52. Q52 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 49: earnings per share Rs 76.4 and payout ratio 45%. Dividend per share is Rs

    1. A 76.4
    2. B 42.0
    3. C 68.8
    4. D 34.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  53. Q53 easy

    Dividend policy scenario 48: earnings per share Rs 74.1 and payout ratio 40%. Dividend per share is Rs

    1. A 74.1
    2. B 29.6
    3. C 44.5
    4. D 59.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  54. Q54 easy

    Dividend policy scenario 47: earnings per share Rs 71.8 and payout ratio 35%. Dividend per share is Rs

    1. A 71.8
    2. B 46.7
    3. C 25.1
    4. D 50.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  55. Q55 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 46: earnings per share Rs 69.5 and payout ratio 30%. Dividend per share is Rs

    1. A 69.5
    2. B 48.6
    3. C 20.9
    4. D 41.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  56. Q56 easy

    Dividend policy scenario 45: earnings per share Rs 67.2 and payout ratio 25%. Dividend per share is Rs

    1. A 67.2
    2. B 16.8
    3. C 50.4
    4. D 33.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  57. Q57 easy

    Dividend policy scenario 44: earnings per share Rs 64.9 and payout ratio 75%. Dividend per share is Rs

    1. A 64.9
    2. B 16.2
    3. C 48.7
    4. D 97.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  58. Q58 Past Paper · PPSC/FPSC/NTS medium

    Dividend policy scenario 43: earnings per share Rs 62.6 and payout ratio 70%. Dividend per share is Rs

    1. A 62.6
    2. B 18.8
    3. C 43.8
    4. D 87.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  59. Q59 easy

    Dividend policy scenario 42: earnings per share Rs 67.3 and payout ratio 65%. Dividend per share is Rs

    1. A 67.3
    2. B 23.6
    3. C 87.4
    4. D 43.7
    💡 Explanation:

    DPS = EPS × payout ratio.

  60. Q60 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 41: earnings per share Rs 65.0 and payout ratio 60%. Dividend per share is Rs

    1. A 39
    2. B 65.0
    3. C 26.0
    4. D 78.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  61. Q61 medium

    Dividend policy scenario 13: earnings per share Rs 28.6 and payout ratio 30%. Dividend per share is Rs

    1. A 28.6
    2. B 20.0
    3. C 17.2
    4. D 8.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  62. Q62 Past Paper · PPSC/FPSC/NTS easy

    Dividend policy scenario 15: earnings per share Rs 26.2 and payout ratio 40%. Dividend per share is Rs

    1. A 26.2
    2. B 10.5
    3. C 15.7
    4. D 21.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  63. Q63 medium

    Dividend policy scenario 16: earnings per share Rs 28.5 and payout ratio 45%. Dividend per share is Rs

    1. A 28.5
    2. B 15.7
    3. C 25.6
    4. D 12.8
    💡 Explanation:

    DPS = EPS × payout ratio.

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