Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Finance Capital budgeting decisions Dividend decision
What is the valuation formula based on the Walter's model if
P: Price per equity share
D: Dividend per share
E: Earnings per share
r: Rate of return on investment
k: Cost of equity
1
\(P = \frac{D+(E-k)/r}{r}\)
2
\(P = \frac{E+(D-E)r/k}{k}\)
3
\(P = \frac{D+(E-D)r/k}{k}\)
4
\(P = \frac{E+ (E-D)r/k}{k}\)