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Examveda

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

Answer: Option C


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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-4, b-3, c-1, d-2

D. a-3, b-2, c-4, d-1