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!!
Ask the Tutor ACCA AFM
Q1 - Lirio - Mar/June Sample 2016
9y ago#1You 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
9y ago#3You are welcome :-)
This topic is locked — no new replies.