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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Irene

1 months ago

Wait, did they just throw in some random numbers to confuse us? I'm going to need a calculator and a crystal ball to figure this one out.

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Candra

1 months ago

10%? That's a no-brainer! This question is a piece of cake. I could do these in my sleep.

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Marshall

1 months ago

Hmm, this seems like a tricky one. I'm going to go with option C - 8%. That just feels right to me.

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Mee

9 days ago

User 3: Option C - 8% sounds good to me too.

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Remona

13 days ago

User 2: I'm going with option D - 10%.

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Emeline

16 days ago

User 1: I think the growth rate in dividend is 6%.

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Zena

2 months ago

I'm not sure about this one. The numbers don't seem to add up. Maybe I should double-check my calculations.

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Carman

12 days ago

User 3: I calculated it, and the growth rate in dividend is 10%.

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Stephane

14 days ago

User 2: The dividends are increasing each year, so we need to find the rate of growth.

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Cherelle

1 months ago

User 1: I think we need to calculate the growth rate in dividend.

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Nan

2 months ago

The growth rate in dividend is definitely 10% according to the information provided. The dividends are increasing by 10% each year.

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Makeda

17 days ago

Yes, the dividends are definitely growing at a rate of 10%.

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Tequila

18 days ago

I believe it's increasing by 10% each year.

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Glendora

1 months ago

I think the growth rate in dividend is 10%.

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Timmy

2 months 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

2 months ago

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

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Floyd

2 months ago

I think the answer is B) 6%

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Gayla

2 months ago

I calculated it too, and I also got 6%

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Gregoria

3 months ago

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

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Goldie

3 months ago

I think the answer is B) 6%

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