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dividend growth and getting the calulation accurate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › dividend growth and getting the calulation accurate

  • This topic has 5 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • December 3, 2017 at 1:45 pm #419925
    richardscully
    Participant
    • Topics: 197
    • Replies: 145
    • ☆☆☆

    I can’t come out with the right figure

    current 10,36….10 years ago 7,36 (so root 9) and figure always wrong

    December 3, 2017 at 6:56 pm #420007
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    If it was 10 years ago then you should be taking the 10th root – not the 9th root!

    December 4, 2017 at 8:06 am #420095
    richardscully
    Participant
    • Topics: 197
    • Replies: 145
    • ☆☆☆

    10/7.36 = 1.3586956

    i then push that cube root sign 3 times and get 1.011417

    Now if i take 7.36 x 1.011417 to the power of 9 or 10 it doesn’t come close to 10

    December 4, 2017 at 2:58 pm #420224
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    First you want a 10th root, not a 9th root, as I wrote in my previous reply.

    Secondly, even if you were correct to take the 9th root, you do not get it by pressing the cube root sign 3 times – that would give you the 27th root!! (You would press the cube root button twice!)

    Thirdly, even if 1.011417 was correct (which it isn’t!) then it would be completely meaningless to multiply it by 7.36!
    10 would be equal to 7.36 x (1.011417^9) – it isn’t because again 1.011417 is not correct anyway!

    Your calculator should have a button for calculating the x’th root of anything.

    December 4, 2017 at 3:14 pm #420234
    richardscully
    Participant
    • Topics: 197
    • Replies: 145
    • ☆☆☆

    My calculator doesn’t work on that root x where you put your own number in. It comes back with a 5.01 number

    December 4, 2017 at 3:30 pm #420250
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    I am sorry, but I cannot help you with your calculator – different calculators do things in different ways depending on whether or not they use Polish logic.
    If your calculator does have a button for calculating the x’th root, then you need to look at the manual to find out how to use it (if you do not have the manual then you will be able to find it online by Googling the model of calculator).
    If your calculator does not have that button, then I am afraid you are going to have to buy a new one.

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Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘dividend growth and getting the calulation accurate’ is closed to new replies.

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