Q41 Which one of the following is not an assumption of the Walter’s relevance theory model? a. Earnings and Dividends are do not change while determining the value b. The firm finances through external sources c. The firm has infinite life d. The firm’s rate of return and its cost of capital are constant
Q41 Which one of the following is not an assumption of the Walter’s relevance theory model? a. Earnings and Dividends are do not change while determining the value b. The firm finances through external sources c. The firm has infinite life d. The firm’s rate of return and its cost of capital are constant
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q41
Which one of the following is not an assumption of the Walter’s relevance theory model?
a.
Earnings and Dividends are do not change while determining the value
b.
The firm finances through external sources
c.
The firm has infinite life
d.
The firm’s rate of return and its cost of capital are constant
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