Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Finance Capital budgeting decisions Dividend decision
Which one of the following formula is appropriate to determine the market price per share as per Walter Model of dividend?
1
\(\rm P=\frac{DIV}{K}+r\frac{(EPS-DIV)}{K}\)
2
\(\rm P=\frac{(EPS-DIV)}{K}+r\frac{(DIV)}{K}\)
3
\(\rm P=\frac{DIV}{K}+r\frac{(EPS-DIV)/K}{K}\)
4
P = DIV + r/K (EPS - DIV)