June 2013 Q4

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December 5, 2015 at 3:00 pm #287869
yushanshan
Member
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Hi sir,
I just wonder the different usage of the two growth rates of option 1 (4%, 3%) in Q1 (a)
December 5, 2015 at 4:54 pm #287905
John Moffat
Keymaster
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I assume you actually mean question 4!!

The market value is based on the dividends that shareholders expect in the future.
At the moment they will be expected them to grow at 3% a year.
Under option 1 they will expect 4% a year (after 2 years).
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