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The ACCA has uploaded 2 Section C questions from the September/December exams.
I have prepared a suggested answer to Question 32 in the sample exam (Pelta Co), which from the posts on here seems to have been one of the December questions.
You can find it here:
https://opentuition.com/acca/f9/acca-f9-september-december-2017-exams-q32-suggested-answer/May I please ask about Qs 31 of September/December 2017? I have a query re the calculation of the cost of equity as I cannot get 11.7%
Thanks
In future you must start a new thread when you are asking about a different question.
The dividend about to be paid = 7.52 – 7.07 = 0.45
The dividend growth rate = 4th root (0.45/0.37) – 1 = 0.05 or 5%Therefore the cost of equity = (0.45 x 1.05) / 7.07 + 0.05 = 0.117 or 11.7%
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