- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
Hi,Dear john plz do some kind for me as usually and explain this mcqs as I feel really challenging those type of mcqs
This is from opentution quiz but unfortunately I don’t understand the answer by reviewing it.
Btc PLC is about to pay(d1) a divedend of $0.40/share.Divedend are growing at the rate of 5%/annum.share holder req rate of return is 20%/annum and corporation tax is 25%
What is current M.value
ThanksYou simply use the dividend valuation formula on the formula sheet.
Do is 40c (the dividend about to be paid); g = 0.05; Re = 0.20.
The formula gives an ex div value. We need a cum div value because there is a dividend about to be paid, and so we add the amount of the current dividend.I did suggest that you watch our free lectures on this.
Our lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well.
- You must be logged in to reply to this topic.