MyCIMA

# 2 May 2009 P9 ( old version of F3)

Replies : 2
Keywords: F3, P9, Strat CIMA

Hi Can anyone please help me with this question

 

I was looking at the answer for Question 2 in May 2009 P9, and i am a bit confused as to how the answer was arrived at for the actual return to the shareholders

 

This was the equation 

( Share price for latest year - share price for previous year + Dt ( i assume this is Debt x Corp Tax rate) / share price for previous year

 

if you look at the answers provided, what i do not understand is where the figure for the Dt came from, the 19.2?

 

i understand the other figures, but i cannot figure out how the Dt figure came up

 

can someone please help??

I would greatly appreciate it

Thanks!

 

Dt

Dt is the current period dividend per share (£24m / £125m = 19.2p)

Dt

OHhh thank you soooooooo much, it was just one of those things so simple, right there in your face, but i just could not figure it out!!

 

Many thanks!!!!!!