I cant understand the Dividend Capacity as, I well Understand all other topics Like Business Valuation, Hedging of Curreny and Interest Rates risk but please explain some about Dividend Capacity of the Company and the theory part relates to this?
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Dividend Capacity
11y ago#1The dividend capacity is simply the amount available for dividends. There are no theories relating to this.
There are certainly theories regarding the dividend policy a company should follow, but that is a different question.
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