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Commerce · Q525

Business Finance

Graduate and Post Graduate · Commerce · question 525

Q525

The Lintner Model shows that the current dividend depends

A.
Partly on current earnings and partly on the previous year's dividend
Answer
B.
Partly on the market rate of return and partly on the expected rate of return
C.
Partly on current earnings and partly on the expected rate of return
D.
Partly on the previous year's dividend and partly on the market rate of return

Answer: Option A

Solution

Answer: Option A
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