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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › calculation Problem 7
ABC co has just paid dividend of 24 cents per share and its current share price one year ago was $3.60. The total shareholder return for the year was 23.3%.
What is the current share price?
A) $3.84
B) $4.44
C) $3.88
D) $4.20
The total return over the year is 23.3% x $3.60 = $0.8388.
The dividend for the year is $0.24, so the rest of the $0.8388 is the increase in the share price over the year.
so correct ans is d.
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