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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Lamri Co (Dec 2010)
1) How to arrived at dividend required for next year of $8,100,000 ?
Because there is 10% tax withheld.
Sorry, I am still not clear with your answer. Could you show me the calculations please ?
You have edited your original question which was asking about the 90%, and that is what I was answering!!
As far as the 8,100 is concerned, they are due to pay a dividend this year of $7.5M and have maintained a steady 8% annual growth rate. They will therefore be wanting to pay a dividend of 7.5M x 1.08 = 8.1M in the coming year.
Thank you sir 🙂
You are welcome.