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Sir, in this, are we supposed to compute the growth strictly using dividend per share? Also, are we supposed to compute Po using the latest dividend per share, and not the total dividends (on the basis of growth computed as described)?
Please help me out sir
To calculate the market value per share you use the formula, with Do as the current dividend per share, and g as the dividend growth rate. It is the expected future dividends that determine the market value per share.
You should watch the free lectures – on this particular topic best would be to go back and watch the Paper F9 lectures on the valuation of securities (because this is revision of F9).
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