- This topic has 3 replies, 2 voices, and was last updated 7 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Q1 – Lirio – Mar/June Sample 2016’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Q1 – Lirio – Mar/June Sample 2016
my question is in regards to the dividends.
it shows a table of TOTAL dividends paid. so,if we take historical growth rates using the totals, we get 16.67%.
the answer calculates the growth rates based on a per share basis, which is 6%.
how do we know which one to use? since whether u use totals or per share, we shd get the same figures.
and with 16.67%, we can not use the DVM with growth since ke (12) < 16.67.
pls explain!!
You always use the growth rate based on the dividend per share.
Using the total dividend is fine and will give the same answer BUT only if the number of shares stays the same!!
that settles that .. 🙂
thank u
You are welcome 🙂