- This topic has 3 replies, 2 voices, and was last updated 5 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Dear John,
Can you please expain how the examiner calculated the dividend growth rate after year 4 in part (c) of the question?
i didn’t understand how the examiner found out, annual growth rate after year 4 as 7.5%*18.7*40%If you are looking at an answer in the revision kit and they really have typed the workings like that, then it is a typing error 🙂
The average growth rate over the first 4 years is 18.7%
The question says that the growth rate will fall by 60% (i.e. fall to 40%) and so it will fall to
40% x 18.7% = 7.5%Yes, I was checking the answer in the Revision Kit.
I was confused with the dividend valuation model steps.
Thankyou John.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Bento Co’ is closed to new replies.