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Hi,
How to differentiate between ex div and cum div?
I am still confusing the question for example 7 from lecturer note.Omega plc has just paid a dividend of 20c per share.It is intended that the dividend will remain at 20c for each of the next 2 years and thereafter will grow at 4% per year.The shareholders required rate of return is 15% p.a.
hi amy
cum div= ex-div+dividend about to pay
ex div is when dividend already paid.
omega has just paid the dividend so its ex div.
if they say omega about to pay dividend then that would be cum div. and in that case you have to calculate ex div as in our solutions we use ex div.
misbahkiran: Please do not answer in this forum – it is the Ask the Tutor Forum, and you are not the tutor (but please do help people in the other FM forum) 🙂
Amy: misbahkiran is correct.
However it seems as though you are using our free lecture notes without watching the free lectures. If so, then that is pointless – the notes are just lecture notes, and as it says on the front page, you need to watch the lectures that go with them. It is in the lectures that I explain and expand on the notes (including explaining exactly what you have asked in your post).
If you choose not to watch the lectures, then you must buy a Study Text from one of the ACCA approved publishers – the notes without the lectures are not enough.sorry Sir…is there any option to delete posting…i thought helping in forums means any forums..
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