Explain the relevance Theories of Dividend and comment which theory is more suited to the Indian Business Environmen

Theories of Dividend refer to the different theories and perspectives that provide guidance on how companies should determine the amount and frequency of dividend payments to their shareholders. The different theories of dividend include the Walter’s model, Gordon’s model, Modigliani and Miller’s hypothesis, and Bird in the Hand theory, among others.

The Walter's model, also known as the dividend relevance theory, proposes that the dividend policy of a company affects its valuation. The model suggests that the dividend payout ratio should be determined based on the company's internal rate of return and cost of capital. The model is based on the assumption that the company's growth rate is constant, and the investment decisions are independent of the dividend payout.

Gordon's model, also known as the dividend irrelevance theory, suggests that the company's dividend policy is irrelevant, and it does not affect the company's value. ____ ____ _____ __________ __________ ____ ________ ____ _________.
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