Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA PM

december 2014 q 1

KKanan6y ago
Hi Dear Tutor, I have a question. Cum-div=ex-div+about to be paid=3.7107=3.10+0.6107 then we deduct 0.21 from 3.7107 which is 5.50$ here is 3.10$ is ex div and about to be paid is 3.10*0.197=0.6107 about to be paid is future pay-0.6107 has just paid is past pay-0.21 my question here is that why we deduct past oay from cum-div to get current share price?it should be past share price not current smth seems to be confusing thanks in advance
John MoffatJohn MoffatTutor6y ago#1
This question has nothing to do with cum div and ex div. See page 16 of our free lecture notes (and the lecture that goes with it) for an explanation fo the total shareholder return.
Sign in to reply to this topic.