- This topic has 5 replies, 2 voices, and was last updated 12 months ago by LMR1006.
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- November 17, 2023 at 6:55 pm #695024
If a co paid dividend of .10dollars 5 yrs ago
And it recently paid dividend on .15 dollars
And cost of equity is 11%
What would be the current share price and how to calculate it using dvm?
Note that div was paid 5 yrs ago and then recently with no dividends in between.
Can you please help with the answer sir?November 17, 2023 at 11:28 pm #695036Where is this question from?
My role is to help you with questions about your understanding of our lectures and notes.
I can assist you in a question if I know where is it from and what exactly you don’t understand etcNovember 25, 2023 at 8:06 pm #695492My friend sat the exam last month, it’s from the exam. How to calculate the growth rate here is my question. As the dividend wasn’t paid each year. But only 5 yrs ago and then recently.
November 25, 2023 at 9:04 pm #695494I would have to have access to the question to answer it properly
Or be able to see it and review itBut I’d imagine it’s using
PV = Dividend / (1 + Cost of Equity)^n
November 26, 2023 at 4:43 pm #695547I wrote the question is the beginning. Can you answer it?
November 26, 2023 at 8:02 pm #695555Depends on whether the dividend has grown in the last 5 years or assumed that growth was zero
I do not want to try and answer it off an extract, If I can see an absolute question and possibly an answer to see how its done……… that is better for us.
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