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Hi,
On the BPP Mock Exam 1 Question 5
It stated the div had just been paid 36.3.
2008 div was 30.9
2011 div was 35To calculate ‘G’, I did 36.3 / 30.9 ^(1/4) = 4.11%. However the answers did 35/30.9 ^(1/3) = 4.24%.
I want to check why my calculation is incorrect?
Thanks
If you mean Mock Exam 1 in the Revision Kit, then you must be using a previous edition – Question 5 of the mock exam in the current edition is nothing to do with dividend growth (and the question you have typed appears nowhere in the exam).
Presumably the dividend just paid was in 2012, and if so what you have done is correct and it seems that BPP have made a mistake – maybe that is why it is no longer there :-).
However, without being able to see the exact question it is impossible for me to check.
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