O.No.7 A closely- held plastic manufacturing company has been following a dividend policy which can maximize the market value of the firm as per Walter's model. Accordingly, each year at dividend time the capital budget is reviewed in conjunction with the earning for the period and alternative investment opportunities for the shareholders. In the current year, the firm reports net earnings of Rs 5,00,000. It is estimated that the firm can earn Rs 1,00,000 if the amounts are retained. The inventors have alternative investment opportunities that will yield them 10 per cent. The firm has 50,000 shares outstanding. What should be the D/P ratio of the company if it wishes to maximize the wealth of the shareholders