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Dividend Policy MCQs 2026

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

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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 1Questions 1–10 of 63
  1. Q1Past Paper · PPSC/FPSC/NTSmedium

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

    1. A62.6
    2. B18.8
    3. C43.8
    4. D87.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  2. Q2easy

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

    1. A67.3
    2. B23.6
    3. C87.4
    4. D43.7
    💡 Explanation:

    DPS = EPS × payout ratio.

  3. Q3easy

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

    1. A37.6
    2. B9.4
    3. C28.2
    4. D18.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  4. Q4medium

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

    1. A26.5
    2. B35.3
    3. C8.8
    4. D53.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  5. Q5Past Paper · PPSC/FPSC/NTSeasy

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

    1. A28
    2. B40.0
    3. C12.0
    4. D56.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  6. Q6easy

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

    1. A37.7
    2. B13.2
    3. C49.0
    4. D24.5
    💡 Explanation:

    DPS = EPS × payout ratio.

  7. Q7medium

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

    1. A49.0
    2. B17.1
    3. C31.9
    4. D63.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  8. Q8easy

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

    1. A40.2
    2. B53.6
    3. C13.4
    4. D80.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  9. Q9Past Paper · PPSC/FPSC/NTSeasy

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

    1. A58.2
    2. B17.5
    3. C40.7
    4. D35.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  10. Q10medium

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

    1. A22.3
    2. B55.8
    3. C33.5
    4. D44.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  11. Q11Past Paper · PPSC/FPSC/NTSeasy

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

    1. A39.9
    2. B27.9
    3. C24.0
    4. D12
    💡 Explanation:

    DPS = EPS × payout ratio.

  12. Q12Past Paper · PPSC/FPSC/NTSeasy

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

    1. A18.2
    2. B33.1
    3. C14.9
    4. D36.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  13. Q13easy

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

    1. A64.9
    2. B16.2
    3. C48.7
    4. D97.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  14. Q14easy

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

    1. A80.9
    2. B24.3
    3. C56.6
    4. D113.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  15. Q15Past Paper · PPSC/FPSC/NTSmedium

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

    1. A83.2
    2. B62.4
    3. C20.8
    4. D124.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  16. Q16medium

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

    1. A28.5
    2. B15.7
    3. C25.6
    4. D12.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  17. Q17easy

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

    1. A67.2
    2. B16.8
    3. C50.4
    4. D33.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  18. Q18easy

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

    1. A85.5
    2. B64.1
    3. C42.8
    4. D21.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  19. Q19Past Paper · PPSC/FPSC/NTSeasy

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

    1. A24.2
    2. B80.8
    3. C56.6
    4. D48.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  20. Q20easy

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

    1. A21.1
    2. B46.8
    3. C25.7
    4. D42.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  21. Q21Past Paper · PPSC/FPSC/NTSeasy

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

    1. A26.3
    2. B19.7
    3. C13.2
    4. D6.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  22. Q22Past Paper · PPSC/FPSC/NTSmedium

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

    1. A69.5
    2. B48.6
    3. C20.9
    4. D41.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  23. Q23medium

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

    1. A49.1
    2. B24.5
    3. C24.6
    4. D49.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  24. Q24Past Paper · PPSC/FPSC/NTSeasy

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

    1. A24.4
    2. B44.4
    3. C20.0
    4. D48.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  25. Q25easy

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

    1. A71.8
    2. B46.7
    3. C25.1
    4. D50.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  26. Q26easy

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

    1. A74.1
    2. B29.6
    3. C44.5
    4. D59.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  27. Q27Past Paper · PPSC/FPSC/NTSmedium

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

    1. A76.4
    2. B42.0
    3. C68.8
    4. D34.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  28. Q28easy

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

    1. A35.9
    2. B71.7
    3. C35.8
    4. D71.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  29. Q29easy

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

    1. A74.0
    2. B40.7
    3. C33.3
    4. D81.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  30. Q30Past Paper · PPSC/FPSC/NTSmedium

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

    1. A76.3
    2. B30.5
    3. C91.6
    4. D45.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  31. Q31medium

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

    1. A42.2
    2. B27.4
    3. C14.8
    4. D29.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  32. Q32easy

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

    1. A51.1
    2. B78.6
    3. C27.5
    4. D102.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  33. Q33Past Paper · PPSC/FPSC/NTSeasy

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

    1. A44.5
    2. B17.8
    3. C26.7
    4. D35.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  34. Q34medium

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

    1. A14
    2. B55.9
    3. C41.9
    4. D28.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  35. Q35Past Paper · PPSC/FPSC/NTSeasy

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

    1. A51.3
    2. B35.9
    3. C15.4
    4. D71.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  36. Q36medium

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

    1. A62.7
    2. B28.2
    3. C34.5
    4. D69.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  37. Q37Past Paper · PPSC/FPSC/NTSeasy

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

    1. A39
    2. B65.0
    3. C26.0
    4. D78.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  38. Q38easy

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

    1. A46.7
    2. B18.7
    3. C56.0
    4. D28
    💡 Explanation:

    DPS = EPS × payout ratio.

  39. Q39Past Paper · PPSC/FPSC/NTSeasy

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

    1. A26.2
    2. B10.5
    3. C15.7
    4. D21.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  40. Q40Past Paper · PPSC/FPSC/NTSeasy

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

    1. A58.1
    2. B32.0
    3. C52.2
    4. D26.1
    💡 Explanation:

    DPS = EPS × payout ratio.

  41. Q41easy

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

    1. A53.5
    2. B34.8
    3. C37.4
    4. D18.7
    💡 Explanation:

    DPS = EPS × payout ratio.

  42. Q42easy

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

    1. A30.9
    2. B10.8
    3. C20.1
    4. D21.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  43. Q43medium

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

    1. A35.4
    2. B14.2
    3. C42.4
    4. D21.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  44. Q44medium

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

    1. A28.6
    2. B20.0
    3. C17.2
    4. D8.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  45. Q45easy

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

    1. A18
    2. B24.0
    3. C6.0
    4. D36.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  46. Q46Past Paper · PPSC/FPSC/NTShard

    Dividend irrelevance theory (Modigliani-Miller) assumes

    1. Ahigh asymmetric information always
    2. Bno taxes, no flotation costs, and perfect markets
    3. Cmandatory 50% payout ratio
    4. Dprohibited share repurchases
    💡 Explanation:

    MM dividend irrelevance under idealized assumptions.

  47. Q47medium

    Bird-in-the-hand theory favors

    1. Ahigher dividends because investors prefer certain cash now
    2. Bzero dividends always
    3. Conly stock splits
    4. Donly bond financing
    💡 Explanation:

    Certain dividends reduce perceived risk.

  48. Q48Past Paper · PPSC/FPSC/NTSmedium

    Clientele effect suggests firms attract

    1. Ainvestors whose tax and income preferences match payout policy
    2. Bonly day traders exclusively
    3. Conly creditors
    4. Donly auditors
    💡 Explanation:

    Investors sort by dividend preference.

  49. Q49medium

    Stock dividend (bonus shares) in Pakistan

    1. Areduces total shareholders equity
    2. Bis always taxable cash dividend
    3. Celiminates retained earnings entirely
    4. Dincreases shares outstanding without immediate cash outflow
    💡 Explanation:

    Bonus shares capitalize reserves.

  50. Q50Past Paper · PPSC/FPSC/NTSmedium

    Share repurchase is economically similar to

    1. Aissuing new equity
    2. Bincreasing long-term debt only
    3. Ccash dividend for shareholder wealth in perfect markets
    4. Dcapitalizing advertising expense
    💡 Explanation:

    Both return cash to shareholders.

  51. Q51hard

    Legal reserve requirements in Pakistani companies law context relate to

    1. Aforeign exchange hedging only
    2. BPSX listing fees only
    3. Crestrictions on dividend from capital and minimum profit allocation
    4. DSBP reserve requirements for banks
    💡 Explanation:

    Companies Act governs distributable profits.

  52. Q52Past Paper · PPSC/FPSC/NTSeasy

    Stable dividend policy pays

    1. Azero dividends in profitable years
    2. Brelatively steady dividends even when earnings fluctuate
    3. Cdividends only from asset sales
    4. Drandom payouts unrelated to earnings
    💡 Explanation:

    Stability signals confidence.

  53. Q53easy

    Constant payout ratio policy sets dividends as

    1. Afixed rupee amount regardless of profit
    2. Bfixed percentage of earnings each period
    3. Czero percent always
    4. Dpercentage of total assets
    💡 Explanation:

    Payout ratio links dividends to profit.

  54. Q54Past Paper · PPSC/FPSC/NTSmedium

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

    1. A2
    2. B8.0
    3. C6.0
    4. D4.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  55. Q55easy

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

    1. A10.3
    2. B7.2
    3. C3.1
    4. D6.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  56. Q56easy

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

    1. A12.6
    2. B8.2
    3. C4.4
    4. D8.8
    💡 Explanation:

    DPS = EPS × payout ratio.

  57. Q57Past Paper · PPSC/FPSC/NTSmedium

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

    1. A6
    2. B14.9
    3. C8.9
    4. D12.0
    💡 Explanation:

    DPS = EPS × payout ratio.

  58. Q58easy

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

    1. A17.2
    2. B9.5
    3. C7.7
    4. D15.4
    💡 Explanation:

    DPS = EPS × payout ratio.

  59. Q59easy

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

    1. A19.5
    2. B9.7
    3. C9.8
    4. D19.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  60. Q60Past Paper · PPSC/FPSC/NTSmedium

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

    1. A21.8
    2. B9.8
    3. C24.0
    4. D12
    💡 Explanation:

    DPS = EPS × payout ratio.

  61. Q61easy

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

    1. A17.1
    2. B6.8
    3. C10.3
    4. D20.6
    💡 Explanation:

    DPS = EPS × payout ratio.

  62. Q62Past Paper · PPSC/FPSC/NTSeasy

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

    1. A19.4
    2. B12.6
    3. C6.8
    4. D25.2
    💡 Explanation:

    DPS = EPS × payout ratio.

  63. Q63medium

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

    1. A21.7
    2. B6.5
    3. C30.4
    4. D15.2
    💡 Explanation:

    DPS = EPS × payout ratio.

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