Which of the following equity valuation methods records surplus cash on the balance sheet but assumes that the surplus cash is paid out over time for valuation purposes?
A)the projection of maximum dividends
B)the calibration of pseudo dividends
C)sustainable growth dividend retention
D)return on equity method

Question

Quizplus · Accepted Answer

The calibration of pseudo dividends method involves adjusting the valuation for surplus cash by assuming it is paid out over time, rather than being immediately available. This approach helps in assessing the value of a company more accurately by considering the potential future distribution of excess cash.

Which of the Following Equity Valuation Methods Records Surplus Cash