[chimene]

Thank you very much sir.

[chimene]

Hello Sir John,
I too had a difficulty with that question and your explanation above has clarified my doubts.
but, I haven’t still understood how they got the current present value of dividends to shareholders. This is their working :

(1.6 x 1.03) / (0.09 – 0.03) = 27.3 million.

I don’t understand how they got the 1.6.
Kindly help me clarify that too sir

Thanks in advance .

[chimene]

Thank you

[chimene]

77

[chimene]

Very sorry Sir

[chimene]

The answer is 66500$
(60,000 + 6,000 + 500). Training costs are not to be included in the calculation because they fall under revenue expenditure, while the others fall under capital expenditure.

[chimene]

Thank you very much sir

[chimene]

Thank you Micheal

[chimene]

I like the idea. Will they put it in action soon please? Or they are still thinking ?
Thanks for the update sir

[Author]

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