Hi John,
Happy New Year!!
Have a doubt in question 4 of Jun 2014 F9 paper. MFZ Co. In part b they have asked to calculate the equity MV using the dividend growth model and I have used the geonetric dividend grwth over the last two years however the answer suggests both the geometric growth as well as the one year growth which is nil. Please suggest that only geometric growth is fine to use for this?
Many thanks!!
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F9 2014 June MFZ Co
7y ago#1Thank you, and a Happy New Year to you also :-)
Yes - that would be OK and would still get the marks :-)
(The examiner showed that also because those people who did it that way would have got the marks as well)
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