AAFM Exam CWM_LEVEL_2 Topic 3 Question 60 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 60
Topic #: 3

Section B (2 Mark)

You buy a share of ABC Ltd for Rs. 20. You expect it to pay dividends of Re.1, Rs.1.10 and Rs.1.21 in coming three years. Calculate the growth rate in dividend:

A5%

B6%

C8%

D10%

Show Suggested Answer

Suggested Answer: D

by Dalene at May 27, 2023, 01:17 PM

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Timmy

7 days ago

I'm not sure, but I think the growth rate should be calculated as (1.21-1.10)/1.10 = 0.10 = 10%

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Kiley

9 days ago

I agree with Floyd, the growth rate can be calculated as (1.10-1)/1 = 0.10 = 10%

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Floyd

14 days ago

I think the answer is B) 6%

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Gayla

17 days ago

I calculated it too, and I also got 6%

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Gregoria

18 days ago

I agree with Goldie, the growth rate in dividend is 6%

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Goldie

23 days ago

I think the answer is B) 6%

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