Page 32 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx
P. 32
Chapter 2
Example 2.3
A company paid a dividend of 10 cents per share six years ago. The current
dividend is 17 cents. The current share price is $3.65 ex div.
Required:
Calculate the cost of equity. Show your answer to 1 decimal place.
24