CIMA Financial Strategy F3 Question # 35 Topic 4 Discussion

CIMA Financial Strategy F3 Question # 35 Topic 4 Discussion

F3 Exam Topic 4 Question 35 Discussion:
Question #: 35
Topic #: 4

A company's main objective is to achieve an average growth in dividends of 10% a year. 

In the most recent financial year:

  F3 Question 35

Sales are expected to grow at 8% a year over the next 5 years. 

Costs are expected to grow at 5% a year over the next 5 years. 

 

What is the minimum dividend payout ratio in 5 years' time that would allow the company to achieve its objective?


A.

21.7%


B.

30.0%


C.

27.5%


D.

22.5%


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