ACCA P4 The Cost of Capital (part 1 – Cost of Equity)
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wheres this example taken from?
which book is he following?
Opentuition course notes
i got confused what is the difference btween Re and Ke??????
Hi, thanks for the notes !!!!
A question!
In example 6 of chapter 7 (p4) shouldn’t we use the rearranged formula for the Growth model using instead of D0, D0*(1+g)^2 to calculate the price of the share in 2 yrs time? The way it is shown in the lecture I think it assumes that no dividends will be given out. Am I right?
No – you are wrong.
If the dividends are growing at the rate of g per annum, then (in theory) the market value will also grow at the rate of g per annum. It is not assuming that there will be no dividends at all.
By all means use the growth model formula – as you say, Do becomes Do^2. You will arrive at exactly the same conclusion.
Got it. Thank you!!!!
Great 馃檪
that was a good way to start. step by step tuition i like him.
Very excellent. I now better understand the growth model and the gordon’s growth approximation. Great job. Example 6 was an excellent problem!!
I dont understand the formula for working the average rate of growth out…..I am confused when he says the “4th root of 33,000/28,000 is 1.0419 as this is not the answer i get……….can some one please clarify please? thanks
@fahim231, Divide 33 by 28, press equals, and then take the square root twice.
Brilliant!
Super Super Super. very articulate and easily understandable.
Very clear lecture
Hi thanks so much for this wonderful resource!am using open tuition for the first time and have just downloaded course notes for P4. Can I view the lectures on my blackberry bold 9700?
Thanks again.
Great !!! Very simple and to the point
nice basic training for base F9 …. great work
simply gud
Very clear.
teaching made easy…thank you for the simplicity…this is so beautifully thought that i’m already feeling excited about this paper..thank you OP
Impressive and simple.
Can you make the videos downloadable because we can not view it at proper speed / quality due to poor internet connection / speed and then many of the users in our part of the world may not have internet access from Home
Pls, i cant hear the sound of the video lecture.how do i copy the video so i can watch it offline.
check support page for help,
and videos are not downloadable
Sir can the videos be downloaded? and the examples quoted are from which book.
i like cost of capital
Cost of Capital at it’s basic. Very good