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Commerce · Q68

Business Finance

Graduate and Post Graduate · Commerce · question 68

Q68

Which one of the following statement is false?

A.
Effective dividend policy is an important tool to achieve the goal of wealth maximisation
B.
According to Walter, the optimal payout ratio for a growth firm is 100%
Answer
C.
MM model asserts that the value of the firm is not affected whether the firm pays dividend or not
D.
Bird-in-the-hand theory' in reference to dividend decision has been developed by Myron Gordon

Answer: Option B

Solution

Answer: Option B
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