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Exam F2 All Questions
Exam F2 All Questions

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CIMA Management F2 Question # 56 Topic 6 Discussion

F2 Exam Topic 6 Question 56 Discussion:
Question #: 56
Topic #: 6

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:


A.

12.4%


B.

11.9%


C.

7.4%


D.

6.9%


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