This document discusses dividend theories and models for determining stock prices, including Walter's model, Gordon's model, and the MM hypothesis. Walter's model supports the view that a firm's dividend policy impacts its value and divides firms into growth, normal, and declining categories based on return and cost of capital. Gordon's model says a firm's share price depends on its dividend payout ratio based on assumptions about earnings growth and retention. The MM hypothesis argues that the value of a firm is determined by its earnings power and risk, not its dividend policy, based on assumptions of perfect capital markets and no taxes.