The valuation method involving the extraction of pseudo dividends treats changes in surplus cash as possible free cash flows to equity.

Name: The valuation method involving the extraction of pseudo dividends treats changes in surplus cash as possible free cash flows to equity.
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Quizplus · Accepted Answer

This statement is true. The pseudo dividend valuation method assumes that changes in surplus cash can be seen as potential free cash flows to equity, which can then be used to value the equity of a company.

The Valuation Method Involving the Extraction of Pseudo Dividends Treats