Using the 'empirical form' of Lintner's model of dividend formulation together with the information provided below determine the long- run payout ratio of Maxwell's Limited.
Historical data for Maxwell's Limited Using a regression analysis,an analyst estimates the following additional variables:
a = 24.8
b = 0.2589
c = - 0.5481
What is the long- run payout ratio?
Correct Answer:
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b = αq
c = - α
Where the long- ...
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