Which one of the following is not an assumption of Walter's model ?

CS Executive · Financial and Strategic Management · PYQS · December 2021
Which one of the following is not an assumption of Walter's model ?
(A) The firm finance all investment through Debt or Retained earnings
(B) The firm's internal rate of return is constant
(C) The firm's cost of equity capital is constant
(D) The firm has a very long or infinite life.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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