Chapter 8: source and coverage limits

# Dividend Decisions boundaries
Official PDF https://resource.cdn.icai.org/87746bos280825-ch8.pdf . Concepts read: payout/retention/growth/determinants and liquidity, constant amount/ratio/Lintner, MM/Walter/Gordon/DDM, bonus/split/buyback.
Page5 taxrates15%STCG/10%LTCG and bonuslegalconditions not verified currentprimaryfacts. Do not advise a realtax/corporateaction from this text. Page3 nextdayafterdeclaration ex-date wording is not universal; actual issuer/exchange notice,recorddate,settlementcalendar needed.
Page4 25%of10=4 arithmetic is wrong:pro-rata fractional2.5, cash500/remaining7.5x200=1500. Four tenderedshares is40% and a different allocation; totalwealth may still equal2000 in the no-tax model. Actual fractional/integer/tender and legalterms separate.
Gordon requiresKe>g=br. Page27zero-payoutgrowthoptimum cannot be applied at r>Ke where fullretention violates convergence. Pack enforcesb<Ke/r; atKe=g denominatorzero/outsidevalidmodel, not negative/finite marketquote. At r=Ke,b1 endpoint0/0 distinctfromfinite limitforb<1. E1 nextearnings andD0justpaid/D1nextdividend dates explicit. Multistage highgrowth finite and sustainableterminalgrowth used. No genuine liveprice assertion frommodel output.
Walter0<=D<=ordinaryE; preference deducted fromPAT beforeordinaryEPS. Inverse price targets can be infeasible. Walter/Gordon/Lintner outputs answer different assumptions/questions, not quotes requiredtomatch. MM fixedinvestment/perfectmarket/no-tax/friction conditions; newissuecash not freeholderwealth, equityvalue not enterprisevalue. Integerissuanceceil versus continuousmodel andcashsurplus distinguished.
Policy names onpages12/13 uneven; use numeric behaviour fixedDPS/fixedpayout/smoothing. AccountingPAT not cashcapacity, retentionnotfreecapital, residualinvestmentfinancefeasibility explicit. Bonus/splits redistributesameidealvalue, not guaranteedwealthgain/currenttaxbenefit. No declaration,issue,buyback/tradeorpurchase action authorised by exercises.
Original indicative capped marking,private preparation not officialanswers/fullbank. No deployment/G1/AuthFirestore/spend/oldledgerchange.