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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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