CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 5 Discussion

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

Question #: 5
Topic #: 1

LM are just about to pay a dividend of 20 cents a share. Historically, dividends have grown at a rate of 5% each year.

The current share price is $3.05.

The cost of equity using the dividend valuation model is:

A12.4%

B11.9%

C7.4%

D6.9%

Show Suggested Answer

Suggested Answer: A

by Eladia at May 08, 2022, 11:08 PM

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