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
Ask the Tutor ACCA PM
december 2014 q 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.
