Walter''s Model, Financial Management

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Explain the effect of different dividend policies on the value of share respectively as per the walter model in
Case 1: Dividend payout ratio is 50%
Case 2: Dividend payout ratio is 30%
Earning Per Share = 30 per share
Dividend = 12 per share
Re-investment rate in the firm - 20%
expected return by the shareholder - 15%.

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