A view that the dividend policy of a firm has a bearing on share valuation advocated by James E. Walter is based on which one of the following assumptions?
A. Retained earnings is only source of financing.
B. Cost of capital does not remain constant.
C. Return on investment fluctuates.
D. All the above.
Answer:A
A view that the dividend policy of a firm has a bearing on share valuation advocated by James E. Walter is based on which one of the following assumptions?
A. Retained earnings is only source of financing. B. Cost of capital does not remain constant. C. Return on investment fluctuates. D. All the above.