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F9 suggested answers on section A question 3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › F9 suggested answers on section A question 3

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • June 18, 2015 at 5:03 pm #257767
    parthasaradhi
    Member
    • Topics: 3
    • Replies: 10
    • ☆

    F9 suggested answers on section A question 3

    Dear John,

    option B is as follows. Mean growth in dividends per share over the period is 4%
    and my calculation is as follows. (15/13)^(1/3)-1= 4.88%
    Option D is as follows. Mean growth in earnings per share over the period is 6% per year and my calculation is as follows. ( 35.7/30)^(1/3) = 5.96%

    can you plz suggest your answer on this.

    June 18, 2015 at 5:57 pm #257789
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54710
    • ☆☆☆☆☆

    I have suggested the answer – D

    5.96% is virtually 6%

    4.88% is a lot different from 4% (in fact it is 22% different ) !!!!!

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