CIMA F3 Question Answer
A company is valuing its equity prior to an initial public offering (IPO).
Relevant data:
• Earnings per share $1.00
• WACC is 8% and the cost of equity is 12%
• Dividend payout ratio 40%
• Dividend growth rate 2% in perpetuity
The current share price using the Dividend Valuation Model is closest to:
CIMA F3 Summary
- Vendor: CIMA
- Product: F3
- Update on: Jul 29, 2025
- Questions: 435
