Question

"according to walter's model the optimum payout ratio can be either zero or 100 per cent." explain the circumstances, when this is true.

Answer 1

32. A can run a kilometre in 4 min 54 sec and B in 5 min. How many metres start can A give B in a km race so that the race may end in a dead heat? A. 25 m. B. 20 m. C. 15 m. D ...

Races and Games of Skill - Solved Examples - Set 1 - Careerbless

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1. A is 2 1⁄3 times as fast as B. If A gives B a start of 80 m, how long should the race course be so that both of them reach at .... A can run 224 metre in 28 seconds and B in 32 seconds .

Answer 2

Walter's model is based on certain assumptions which are are that all the investments are funded by the company even there are retained earnings existing.

Explanation:

• To be more detailed the savings other retained earnings are the only sources of capital of finance for the company.
• It also states that the firm does not base or rely upon outside funds like equity for debtors.
• Due to that fact the optimum ratio can be either 0 or 100 which is what is mentioned in the question.
• The Walters model’s valuation formula can help us to find the answer for this particular question.

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