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MC Question 3
Formulae & Tables
FM (F9) Formulae Sheet
You will get this Formula Table at the exam so learn well how to apply it in your FM (F9) Exam
The following information relates to a company:
Year | 0 | 1 | 2 | 3 |
---|---|---|---|---|
Earnings per share (cents) | 30·0 | 31·8 | 33·9 | 35·7 |
Dividends per share (cents) | 13·0 | 13·2 | 13·3 | 15·0 |
Share price at start of year ($) | 1·95 | 1·98 | 2·01 | 2·25 |
Which of the following statements is correct?
A. The dividend payout ratio is greater than 40% in every year in the period
B. Mean growth in dividends per share over the period is 4%
C. Total shareholder return for the third year is 26%
D. Mean growth in earnings per share over the period is 6% per year