Walter's Model of Dividend
Walter's Model of Dividend Decision for CA Inter FM: formula, r vs Ke logic, worked examples & common exam mistakes explained simply.
Paper 6 — Financial Management & Strategic Management · Chapter
Dividend Decisions
Dividend theories (Walter, Gordon, MM) and dividend policy considerations. Expect 4–6 marks per attempt.
19 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
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2
Gordon's Model of Dividend
Gordon's Model for CA Inter FM: formula, worked examples, r vs Ke cases, and exam tips for dividend relevance theory — May 2026 ready.
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3
Modigliani-Miller Hypothesis & Dividend Policy
MM Hypothesis for CA Inter FM: why dividend policy doesn't affect firm value, key assumptions, P₁ formula & new shares calculation — exam-fo
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4
Determinants of Dividend Decisions
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5
Dividend Theories — Advantages and Limitations of MM, Walter's and Gordon's Models
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6
Gordon's Model
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7
Gordon's Model – Assumptions, Advantages & Limitations
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8
Introduction to Dividend Decisions and Key Concepts
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9
Lintner's Model
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10
Modigliani and Miller (MM) Approach
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11
Payout Policies — Constant Dividend Policy vs Stable Dividend Policy
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12
Practical Considerations & Constraints on Paying Dividends (Growth vs Mature Companies)
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13
Share Buyback
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14
Share Buyback – Meaning, Effects & Types
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15
Stock Split and Share Buyback
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16
Stock Split – Meaning, Advantages & Limitations
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17
Stock Splits
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18
Walter's Model
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19
Walter's Model – Assumptions, Advantages & Limitations
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