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AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 342 Topic 35 Discussion

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AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 342 Topic 35 Discussion

CWM_LEVEL_2 Exam Topic 35 Question 342 Discussion:
Question #: 342
Topic #: 35

Section C (4 Mark)

Read the senario and answer to the question.

Neeraj’s portfolio consist shares of company X Ltd. which is paying a dividend of Rs. 2 per share. The dividend is expected to grow @15% annual rate for 3 years, then @10% for the next 3 years, after which it is expected to grow @5% forever. What among the following would be your advice to Neeraj in case the market value of the share is Rs. 85? Assume capitalization rate to be 9% per annum
A.

Keep the share as the market price is higher than the current value of the share.

B.

Sell the share as the market price is lower than the current value of the share

C.

Buy more shares as market price is lower than current value

D.

Sell the shares as the market price is higher than the current value of the shares

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Actual exam question for AAFM CWM_LEVEL_2 exam by Echo8776 at Aug 3, 2025, 12:00:00 AM

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