• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Business valuation using DGM

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Business valuation using DGM

  • This topic has 2 replies, 2 voices, and was last updated 1 year ago by IAW3005.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • May 1, 2024 at 9:04 pm #704787
    Shakurs
    Participant
    • Topics: 2
    • Replies: 0
    • ☆

    Cant Co has a cost of equity of 10% and has forecast its future dividends as follows: Current year: No dividend Year 1: No dividend Year 2: $0.25 per share Year 3: $0.50 per share and increasing by 3% per year in subsequent years What is the current share price of Cant Co using the dividend valuation model?

    May 2, 2024 at 6:45 am #704804
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1604
    • ☆☆☆☆☆

    What is your question please?
    Where is the question from?
    Have you tried to attempt it?

    May 2, 2024 at 6:48 am #704805
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1604
    • ☆☆☆☆☆

    Share price = (Dividend in Year 2 x (1 + Growth Rate)) / (Cost of Equity – Growth Rate)
    Share price = ($0.25 x (1 + 0.03)) / (0.10 – 0.03= $3.68

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • YvonneB on Introduction to Taxation – CIMA F1 Financial Reporting
  • Arnold89 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • deepikasingh on ACCA BT Chapter 17 – The nature of communication – Questions
  • deepikasingh on ACCA BT Chapter 14 – How people learn – Questions
  • zurapirveli@gmail.com on Equity settled share based payments – goods – ACCA (SBR) lectures

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in