Which combination of the following represents the assumptions of the Walter rsquo s dividend model n...........

Miscellaneous Others

Which combination of the following represents the assumptions of the Walter’s dividend model ? (2 marks)

I. The company has a very long or perpetual life.

II. All earnings are either reinvested internally or distributed as dividend.

III. There is no floatation cost for the company.

IV. Cost of capital of the company is constant.

Codes :

I II III

II III IV

I II IV

I III IV

I III IV

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