ACCA December Exams

Post comments & Vote in Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>

Cash based valuation methods

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 22, 2018 at 8:12 am #453299
claudia1
Participant
- Topics: 5
- Replies: 9
Hello Sir, can you assist? I am trying to understand why in example 1 on page 76 in the notes in working out the perpetuity, 12.168 was divided by .1 – .04.
May 22, 2018 at 9:55 am #453327
John Moffat
Keymaster
- Topics: 57
- Replies: 54500
It is an inflating perpetuity and so we use the dividend valuation formula.
The dividend valuation formula will give the present value of any inflating perpetuity (not just the market value of shares when we are using the inflating dividend flows).
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.