CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 46 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 46
Topic #: 1

EF have just paid a dividend of 20 cents a share and the current share price is $3.75. EF regularly reinvests 40% of its profit for the year and generates a return on reinvested funds of 12%.

The cost of equity for EF using the dividend valuation model is:

A10.4%

B12.9%

C10.7%

D13.2%

Show Suggested Answer

Suggested Answer: A

by Wynell at May 05, 2022, 03:15 AM

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