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Hi
The question asks to calculate ex dividend share price, using DGM model. It says that previous dividend was 0.50c and next year it will be 0.52c and the dividend payout ratio is 40%.
Now the answer of ex dividend share price is 619.05c and I am struggling to comprehend how this answer has been worked out?
Either you have not copied the whole question or there is an error in your book, because there is not enough information given so as to be able to calculate the share price.
If it is a past exam question or a question in the current edition of the BPP Revision Kit then tell me which question and I will check.
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