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Stock valuation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Stock valuation

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • March 13, 2021 at 1:53 am #614314
    Chikumbuso
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Six years ago ABC Corporation paid a K10 dividend and just paid a K13.40 dividend this year. Investors expect this growth rate to continue into the foreseeable future. Your required rate of return for investments in a firm as risky as ABC Corporation is 20 percent

    (i) What is the value of one share of stock?

    March 13, 2021 at 7:58 am #614333
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    You question has nothing at all to do with Paper FA. Valuing shares is not in the syllabus for Paper FA and is not examined until later exams.

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