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Commerce · Q416

Miscellaneous in Commerce

Graduate and Post Graduate · Commerce · question 416

Q416

Which one of the following assumptions is not covered in the Walter's Model of the dividend policy?

A.
All financing is done through retained earnings
B.
Firm's business risk does not change due to additional investments
C.
The firm has an infinite life
D.
The key variables like EPS and DPS keep on changing
Answer

Answer: Option D

Solution

Answer: Option D
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