The formula for Walter's Model of Equity Valuation is : $P=\frac{D+r/ke(E-D)}{ke}$ Which of the following is not correct explanation of abbreviations used in the formula ?

CS Executive · Financial and Strategic Management · PYQS · June 2022
The formula for Walter's Model of Equity Valuation is : $P=\frac{D+r/ke(E-D)}{ke}$ Which of the following is not correct explanation of abbreviations used in the formula ?
(A) P-Market Price per share
(B) D-Dividend per share
(C) r-Rate of Interest
(D) E-Earning per share

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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