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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Dividend Capacity
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?
The 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.
