Which one of the following assumptions is not covered in the Walter's Model of the dividend policy?
A. All financing is done through retained earnings
B. Firm's business risk does not change due to additional investments
C. The firm has an infinite life
D. The key variables like EPS and DPS keep on changing
Answer: Option D
Related Questions on Miscellaneous in Commerce
A. Expenditure for the business
B. Cost for the business
C. Gain for the business
D. None of the above
Which of these items would be accounted for as an expense?
A. Repayment of bank loan
B. Dividend to stock holders
C. The purchase of land
D. Payment of current period rent
Debit the receiver credit the giver rule for:
A. Real a/c
B. Personal a/c
C. Nominal a/c
D. None of these

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