NOTICE: Register for the September exam until 11th May!!!

All students that had entered for the June 2020 exam will have received a credit on their MyACCA account (unless their employer or learning provider paid ACCA directly).

We recommend you to use this refund to enter for the September 2020 exams, this will secure your entry and location of choice. 

You will also benefit from the cheaper Early Exam Entry fee if you book by 11th May.

MC Question 14

SKV Co has paid the following dividends per share in recent years:
Year 2013 2012 2011 2010
Dividend (cents per share) 36·0 33·8 32·8 31·1
The dividend for 2013 has just been paid and SKV Co has a cost of equity of 12%.

Using the geometric average historical dividend growth rate and the dividend growth model, what is the market price of SKV Co shares to the nearest cent on an ex dividend basis?

A. $4·67
B. $5·14
C. $5·40
D. $6·97

744 others have taken this question