Q1. Write detail notes on Dividend Policy with suitable example?
Q2. In brief describe the Walter’s model.
Q3. Illustrate the meaning of Residual theory of dividend?
Q4. How far do you agree that the dividends are:
a) Relevant
b) Irrelevant for the value of the firm
Q5. Describe with appropriate examples, the Walter model, its benefits and limitations.
Q6. Describe the suppositions of MM model. Write down fundamental concept of MM model of dividend payment approach.
Q7. Walter’s models and Gordon’s models are based on similar assumptions. Therefore, there is no fundamental difference between the two. Describe.
Q8. Present dividends are always favored by the shareholders against the future capital profit. Describe with examples.
Q9. Describe the arbitrage method of the MM model in support of the dividend irrelevance.
Q10. The underlying suppositions of the irrelevance theorem of MM model are its short comings. Critically study this statement.