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Commerce Short Question | Gkseries

Q.

Which one of the following statements is false ?

[A] Effective dividend policy is an important tool to achieve the goal of wealth maximisation.
[B] According to Walter, the optimal payout ratio for a growth firm is 100%.
[C] MM model asserts that the value of the firm is not affected whether the firm pays dividend or not
[D] ‘Bird-in-the-hand theory’ in reference to dividend decision has been developed by Myron Gordon.
Answer & Explanation

Answer: According to Walter, the optimal payout ratio for a growth firm is 100%.

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