UGC NET COMMERCE December 2018 Q80

0. Which of the following statements are false?
(i) Capital profits can never be distributed as dividends to the shareholders.
(ii) Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
(iii) Every company should follow the policy of low dividend payment.
(iv) Walter’s model suggests that dividend payment does not affect the market price of the shares.
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