The valuation approach involving maximum dividends suggests:

Question

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The maximum dividends approach involves projecting dividends that exhaust any surplus cash, which is different from the actual dividends expected to be paid (A). This method also focuses on dividends related to venture operations rather than those reflecting cash not involved in operations (B). There is no indication that a net operating working capital adjustment is utilized in this method (D).

The Valuation Approach Involving Maximum Dividends Suggests