Question

which of the following assumption are not related to walter model​

Answer 1

Answer

Assumptions of Walter's Model of the dividend policy include:

Financing of the company's requirements is done through the retained earnings, with no external financing.

The rate of return (r) and the cost of capital (K) remain constant irrespective of any changes in the investments.

The earnings per share (EPS) and Dividend per share (DPS) remains constant.

The firm has a perpetual life.