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a company has total investment of rupees 1 0 lakhs and 1 lakh outstanding shares of face value of rupees 1 0 each it earns

a company has total investment of rupees 10 lakhs and 1lakh outstanding shares of face value of rupees 10 each it earns returns rate of interest of 11% on its investment and has policy of paying 60% of its earnings as dividend it is optimum Dividend policy as per walter's model what is the optimum policy and why assume that required rate of return is 12%

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