Which among the following is not an assumption of Walter's Model ?

CS Executive · Financial and Strategic Management · PYQS · June 2024
Which among the following is not an assumption of Walter's Model ?
(A) Firm's Internal Rate of return and cost of equity capital are constant
(B) All earnings are either distributed or reinvested immediately
(C) All investments are financed through retained earnings
(D) The firm has a limited lifespan

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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