Who formulated the following model for estimating the market price of equity share?
$$P = \frac{{D + \frac{{{R_A}}}{{{R_C}}}\left( {E - D} \right)}}{{{R_C}}}$$
Where,
P = Market price of equity share
D = DPS
E = EPS
E - D = Retained earnings per share
R_A = Internal rate of return on investment
R_C = Cost of capital

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:

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