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dividend capacity

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › dividend capacity

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  • August 1, 2022 at 5:12 am #662259
    jaimiejoc
    Member
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    what is the concept behind adding depreciation to calculate dividend capacity?

    August 1, 2022 at 7:59 am #662265
    John Moffat
    Keymaster
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    The dividend capacity depends on the cash available. Depreciation is not a cash outflow.

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