Dividend Capacity

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December 8, 2016 at 12:31 pm #362214
Muslim Farooque
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Sir how do we calculate dividend capacity and what is it used for?
December 8, 2016 at 3:33 pm #362277
John Moffat
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Dividend capacity is the cash available for shareholders – the free cash flow to equity.

It can be used to value equity when the questions asks you to take a FCFE approach.
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