Hello. I have just finished a question from the exam kit: I have used an old BPP exam kit and the question is from june 2005, RZP Co. In the question we are asked to work out the growth in the following: .dividend per share .EPS .share price
looking at the solution the growths is calculated using both the arithmetical method and the method I have learnt in the syllabus: however I myself did not use the arithmetical method but only the one from the syllabus (1+g)=x/y. How important is to use the arithmetical method in the exam.in the question it does not ask to use both method. would be sufficient to use only the method I know? Many thanks