- 5 Marks
FM – NOV 2015 – L2 – Q2c – Dividend Policy
Calculate the average dividend growth rate for Sankofa Ltd based on given earnings and dividend cover.
Question
c. Sankofa Ltd has a dividend cover of 4 times and recorded the following earnings after tax:
| Year | Earnings (GH₵) |
|---|---|
| 2010 | 100,000 |
| 2011 | 120,000 |
| 2012 | 180,000 |
| 2013 | 220,000 |
| 2014 | 300,000 |
Required:
Calculate the average dividend growth rate for Sankofa Ltd. (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Dividend Growth Rate, Dividend Policy, Earnings
- Level: Level 2
- Topic: Dividend Policy
- Series: NOV 2015
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