F9 Share Value

Please do not write in capital letters. Also, the question does not ask for the market share - it asks for for the market price of a share. The 'trick' in this question is that the Do(1+g) on the top of the formula is in fact the dividend in 1 years time. Usually it is the current dividend + growth, but in this question it is an actual 23c in 1 year (and not 23 + growth) Therefore the MV = 23 / (0.12 - 0.03) = 256c or $2.56

Many thanks. I found this question interesting. My solution was different though: I deducted 0.23 from the increase of 3 to give a growth rate of 2.77% Thus: 0.23(102.77%)/12%-2.77% 0.236371/9.23% =$2.56 Is my solution correct, or just a coincidence?

It is simply a coincidence (and is only the same anyway because it is rounded to the nearest cent). Also, although here the constant growth starts after 1 year, in other questions the growth has started after 2 or after 3 years.