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24 August, 16:35

The "pseudo dividend method" (PDM) is a valuation method involving zero explicitly forecasted dividends and an adjustment to working capital to strip surplus cash.

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  1. 24 August, 16:54
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    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
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