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Commerce · Q159

Business Finance

Graduate and Post Graduate · Commerce · question 159

Q159

Match the statements in List-I with dividend models in List-II as follows: List-I List-II a. Dividend Capitalization Approach 1. Traditional Model b. Dividend policy has a bearing on the share valuation 2. Gordon Model c. Stock market places more weight on dividends than on retain earnings 3. Walter Model d. Dividend payout is irrelevant to the value of the firm 4. Modigliani and Miller Model

Match the statements in List-I with dividend models in List-II as follows:
List-I List-II
a. Dividend Capitalization Approach 1. Traditional Model
b. Dividend policy has a bearing on the share valuation 2. Gordon Model
c. Stock market places more weight on dividends than on retain earnings 3. Walter Model
d. Dividend payout is irrelevant to the value of the firm 4. Modigliani and Miller Model
A.
a-2, b-3, c-1, d-4
Answer
B.
a-1, b-2, c-4, d-3
C.
a-4, b-1, c-3, d-2
D.
a-3, b-4, c-2, d-1

Answer: Option A

Solution

Answer: Option A
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