ExamVeda
Login
Home

Which combination of the following represents the assumptions of the Walter's...

This question belongs to Commerce Business Finance
Business Finance
?

Which combination of the following represents the assumptions of the Walter's dividend model?
1.The company has a very long or perpetual life.
2. All earnings are either reinvested intemally or distributed as dividend.
3. There is no floatation cost for the company.
4. Cost of capital of the company is constant.
Select the correct one:

Answer & Solution
Correct Answer: Option A
Let's discuss the solution. Join the discussion
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.
Keep Learning

Related Questions on Business Finance

The appropriate ratio for indicating liquidity crisis is
A. Operating ratio B. Sales turnover ratio C. Current ratio D. Acid test ratio
Interim cash inflows are reinvested at a rate of return equal to the internal rate of return is the built-in mechanism for
A. Net present value method B. Internal rate of return method C. Profitablity index method D. None of the above
Match List-I with List-II and select the correct answer:
List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage
A. a-4, b-3, c-1, d-2 B. a-3, b-4, c-1, d-2 C. a-2, b-3, c-1, d-4 D. a-3, b-2, c-4, d-1
Which one of the following assumptions is not included in the James E. Walter Valuation model?
A. All financing by retained earnings only B. No change in the key variables such as EPS and DPS C. The firm has finite life D. All earnings are either distributed as dividends or invested internally immediately
More Related Questions on Business Finance