the firm offers an increasing amount of dividend per share at a given level of price per share
the firm has a finite life
the cost of capital of the firm is variable
equal to current assets plus current liabilities including bank borrowings
✅ The correct answer is D.
Walters model on dividend policy assumes that equal to current assets plus current liabilities including bank borrowings. Walter’s model shows the relevance of dividend policy and its bearing on the value of the share.
Walters model on dividend policy assumes that equal to current assets plus current liabilities including bank borrowings. Walter’s model shows the relevance of dividend policy and its bearing on the value of the share.