This is probably going to sound so stupid but how do you estimate the dividend growth in the past on the calculator. in one question the equation is ”4 square root (33000/28000) = 1.042 i cannot for the life of me get this equation to work on the calculator.
Any help would be great. Thanks
I’ve just come across the exact problem myself, and I’ve just solved it – amazing coincidence! The 4 square root is square root twice, but on my calculator you have to square root it twice AFTER the division of the two numbers. 33000 / 28000 =
? ? . I’m not brilliant at maths, so I couldn’t put it in more technical terms than that. Just divide the two numbers first then square root it twice.
I’ve just had this same problem and using your suggestion above it works- thanks!
But the 4 relates to four periods of dividend growth I believe so what do you do if you have say 3 periods or 5?
How would you work that our on calculator?
The annoying thing is I’m pretty sure we covered this in class as its in my notes but its actually getting it right on the calculator that always throws me.
Any help would be really appreciated thanks
I’ve finally worked this out.
On my scientific calculator I had to type the number of periods then SHIFT then the button that has the little x above the square root icon. (The main button on my calculator shows it as a ^ which is why when I typed it without pressing shift, it gave me a different figure as I was obviously asking it to do something else.)
With this I then typed the newest dividend divided by the oldest dividend and it has given me the figure the book comes up with.
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