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Commerce · Q356

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 356

Q356

Which of the following statements are correct? 1. Dividend payout ratio refers to that portion of total earnings which is distributed among equity shareholders of the company 2. 'Bird in hand' argument is given by Gordon's model 3. MM model suggest that dividend payment is very relevant for value of the firm 4. Walter's Model suggests that dividend payment does not affect the market price of the share

A.
1 and 2
Answer
B.
1 and 3
C.
2 and 3
D.
3 and 4

Answer: Option A

Solution

Answer: Option A
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