Q35
Which combination of the following represents the assumptions of the Walter's dividend model? 1.The company has a very long or perpetual life. 2. All earnings are either reinvested intemally or distributed as dividend. 3. There is no floatation cost for the company. 4. Cost of capital of the company is constant. Select the correct one:
A.
1, 2 and 3
AnswerB.
2, 3 and 4
C.
1, 2 and 4
D.
1, 3 and 4
Answer: Option A
Solution
Answer: Option A
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