Which of the following is/are criticism of Walter's Model of Equity Valuation ?

CS Executive · Financial and Strategic Management · PYQS · June 2022

(A) It mixes dividend policy with investment policy

(B) It is based on the unrealistic assumption that return on investment is constant

(C) It assumes that firm's cost of capital or discount rate does not remain constant and changes directly with firm's risk

(D) All of the above

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management