relevance concept of dividend

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Relevance Concept of dividend 1.) Walter’s Approach: Prof. Walter’s model is based on the relationship between the firm’s return on investment i.e. r and the cost of capital or required rate of return i.e. k. According to the model if r>k then the firm should retain the earnings and the optimum pay-out ratio would be zero, If r<k then for the firm the optimum pay-out

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Relevance Concept of dividend1.) Walter s Approach: Prof. Walter s model is based on the relationship between the firm s return on investment i.e. r and the cost of capital or required rate of return i.e. k. According to the model if r>k then the firm should retain the earnings and the optimum payout ratio would be zero, If r