CFAI Mock March 2014 Morning / Case GreenSnacks

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JJ1337

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Concerning Question 4.)
Can anyone explain how they derive d = 0.037? They state that d = D/P and if I use the industry data I would get D = 0.65*2.45 and P = 21.875
Second: the formula: g = (r-g)/(1+d) should be wrong, right? It should be stated g = (r-d)/(1+d)
Thanks for help!
 
i got it from second formula
P=D(1+G)/R-G
agree?
now they rearrange the equation simple maths
P/D =(1+G)/R-G
now to get into dividend yield mode
we rearrange
D/P = (R-G)/1+G
plug the numbers get the growth.
hope that helped
 
Thanks Sc0rPio.
NOW I see, there is given “trailing dividend yield (%)” - I read over….hahahaha
However, the second formula stated above should be right and the formula presented in the solution (see also my comment above) should be wrong.
 
For this question, why can’t we use g=b*ROE formula? Please help!!
 
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