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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › march/june 2019 question number 18
Hi Dear tutor, I have a question.
I selected choice a because the others are not correct from my own point of view and though a is correct if others wrong.
I really did not catch choce A need explanation?
A is indeed correct.
It is the shareholders required rate of return that determines the market value of shares. The dividend growth model uses that required rate of return.
“same required return” is confused me
Any individual shareholders who wants a higher return (or who will accept a lower return) will have chosen to invest elsewhere.
understood
You are welcome 🙂