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Specimen paper

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Specimen paper

Viewing 2 posts - 1 through 2 (of 2 total)
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  • December 5, 2014 at 5:04 am #217775
    mehreen245
    Member
    • Topics: 15
    • Replies: 21
    • ☆

    Can you please help me with the 14th mcq? Thanx

    December 5, 2014 at 7:55 am #217816
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54500
    • ☆☆☆☆☆

    Average growth is (cube root of 36/31.1) – 1 = 0.05 (or 5%)

    Re is 12%
    Do is 36

    So using the dividend growth model gives (36(1.05))/(0.12-0.05) = 540 (or $5.40 per share)

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