The "maximum dividend method" assumes that all surplus cash will be paid out as dividends. True...

The "maximum dividend method" assumes that all surplus cash will be paid out as dividends.

True

False

Expert Solution

True.

Under maximum dividend method it is assumed that all the surplus cash will be paid out as dividends.

Total cash inflows	xxx
less: estimated cash outflows	(xxx)
maximum dividend that can be paid	xxx

jeff jeffy answered 2 years ago

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