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Forums › ACCA Forums › ACCA FM Financial Management Forums › June 13 Q4
Help !!
The current pv of divs @3% I understand. Buy why in yr 3 the 25c is divide by shareholders req return of 0.09-0.04, if this is year 3 why are we incorporating yr 4 growth ? and if we are doing that why are we not increasing the div on the top of the fraction by 1.04 ??. If I’m honest I don’t really understand the question much at all. If we have yr 3 divs and we want to bring it back to pv now then why aren’t we dividing by 1.09 to the power 3 and not 2 ?? Totally confused.
