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Cost of capital

Financial Management

Current dividend is Do and next dividend is D1 rite Then how in the below question rs.15 is D1, shouldn't it be Do ?

Swathi Krishna

CA Final

★ 8K+

16-Jul-20 22:39

344

Answers (2)

Best Answer

It is said that the Dividend at the end of the current year is expected to be Rs.15. And the dividend received in the current year is Rs.14.19. So Do = Current year Dividend or Value of dividend paid this year = Rs.14.19 And D1 = Dividend at the end of the period or Value of dividend to be paid next year = Rs.15 Since you will be receiving Rs.15 in the next year, it will be D1 and as you have already received Rs.14.19 as current year Dividend, it will be Do.