If a dividend of 15cents per share has just been paid out and the share price one year ago was $3/share and the shareholder return for the year was 25%, what is the current share price.
As usual BPP have not clearly explained how they got the answer $3.60. I asked chat GPT and it gave me $3.90 as the answer using the following method:
current share price “x” = (share price 1 yr ago x (1+s/h return)) + dividend x = ($3 x 1.25)+$0.15 x=£3.90
It looks as though BPP are subtracting the dividend paid so that x=($3×1.25)-$0.15 = $3.60.