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