(d) Calculate the ex dividend share price predicted by the dividend growth model and discu

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(d) Calculate the ex dividend share price predicted by the dividend growth model and discuss the company’s

view that share price growth of at least 8% per year would result from expanding into the retail camera

market. Assume a cost of equity capital of 11% per year. (6 marks)

参考答案:

(d) The dividend growth model calculates the ex div share price from knowledge of the cost of equity capital, the expected growthrate in dividends and the current dividend per share (or next year’s dividend per share). Using the formula given in theformul

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