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Sir i had confusion about this
If it says that the dividend for the next year will by 0.5 and expected to grow at 5 % so we assume that 0.5 is d0 ie the latest dividend and then 0.5(1+5%) but if it says that 0.5 was given at the start of the year and 0.7 was given at the end of the year now the 0.7 is the latest dividend that has just been paid at t0 now or if its going to be paid therefore 0.7 should be used in the dvm right ?It depends on whether you are asked to calculate the market value at the start of the year or at the end of the year.
It will be easier to explain if you refer me to either a past exam question or to a question in the BPP Revision Kit. (I assume that you have watched my lectures on the dividend valuation model?)
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