Forums › ACCA Forums › ACCA FM Financial Management Forums › Please solve question..
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- September 15, 2011 at 6:10 pm #49829
Year (Dividend per share)/Annual dividend growth
2004 $2.8 growth 21.7%
2003 $2.3 growth 4.5%
2002 $2.2 growth Nil
2001 $2.2 growth 29.4%
2000 $1.7 growth NilGeneral price index
2004 117
2003 113
2002 110
2001 105
2000 100What is the real dividend per share???
September 15, 2011 at 6:43 pm #88166Which topic does this question belong?
And which book or notes?September 15, 2011 at 7:08 pm #88167BPP Kit question #2
September 15, 2011 at 8:13 pm #88168I don’t have that kit and haven’t covered the topic yet.
Still what seems here is that you have to find the value of dividend while allowing for inflation.
So, the answer below might be wrong but you can take it as a suggestion
Taking 2000 as a base year:-Year Calculation. Actual dividend Actual Growth
2000 1.7*100/100 1.70 00%
2001 2.2*100/105 2.10 23.5%
2002 2.2*100/110 2.00 -4.76%
2003 2.3*100/113 2.04 2%
2004 2.8*100/117 2.40 17.64%September 15, 2011 at 8:18 pm #88169Year; Calculation. =Actual dividend ••••••Actual Growth
2000; 1.7*100/100 =1.70 •••••••••••••••••••••00%
2001; 2.2*100/105= 2.10•••••••••••••••••••••• 23.5%
2002; 2.2*100/110= 2.00 ••••••••••••••••••••••-4.76%
2003; 2.3*100/113 =2.04 ••••••••••••••••••••••2%
2004; 2.8*100/117= 2.40 ••••••••••••••••••••••17.64%September 15, 2011 at 9:02 pm #88170Yes, those are correct..as I glance through it. I did not have a base year, I was using the years such as 2001; 100/105 *2.2 =2.1
2002; 105/110*2.2 = 2.1 etc. so I was getting it wrong..Thank u..I haven’t covered the topic either, but still trying to work the kit
September 15, 2011 at 10:39 pm #88171That’s good news. Any ways you r welcome!
May 17, 2014 at 11:40 am #169180AnonymousInactive- Topics: 0
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Thanks a lot! I’ve spent 3 hours before found your very helpful answer.
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