Respuesta :
This question is incomplete, below is the complete one gotten from google:
The "pseudo dividend method" (PDM) is a valuation method involving zero explicitly forecasted dividends and an adjustment to working capital to strip surplus cash. True of False?
Answer:
The "pseudo dividend method" (PDM) is a valuation method involving zero explicitly forecasted dividends and an adjustment to working capital to strip surplus cash - True
Explanation:
With regards to the pseudo dividend method" (PDM) is a valuation method The following happens:
- There is a formally projection of all cash surpluses as paid out as dividends
- Balance sheet will have zero for all surplus cash balances
- Venture’s equity can be valued directly using dividends/issue line in CF Statement (or by equity VCF method)
- There will be no excess cash in end