Which one of the following statement is false?
A. Effective dividend policy is an important tool to achieve the goal of wealth maximisation
B. According to Walter, the optimal payout ratio for a growth firm is 100%
C. MM model asserts that the value of the firm is not affected whether the firm pays dividend or not
D. Bird-in-the-hand theory' in reference to dividend decision has been developed by Myron Gordon
Answer: Option B
This Question Belongs to Commerce >> Business Finance
The appropriate ratio for indicating liquidity crisis is
A. Operating ratio
B. Sales turnover ratio
C. Current ratio
D. Acid test ratio
A. Net present value method
B. Internal rate of return method
C. Profitablity index method
D. None of the above
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
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
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