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Commerce · Q381

Business Finance

Graduate and Post Graduate · Commerce · question 381

Q381

Which one of the following statements is false?

A.
Effective dividend policy is an important tool to achievethe goal of wealth maximization
B.
According to Walter, the optimal payout ratio for a growth firm is 100%
Answer
C.
The MM Model asserts that the value of the firm is not affected whether the firm pays dividend or not
D.
The '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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