The expected dividend as per curriculum is :
= Previous dividend + (expected earnings * target payout ratio - previous dividend) * adjustment factor
Whereas , as per Schweser,
= Previous dividend + ( expected eps growth * target payout ratio * adjustment factor)
These are different. What am i missing?
Follow the curriculum. Schweser is still following the formula used in 2017 syllabus.
Expected dividend
= Previous dividend + (expected earnings * target payout ratio - previous dividend) * adjustment factor
Thank you
I encountered a question on exp dividends on one of the topic tests online, where I got the answer using the Schweser formula. The same I used for the eoc question as well and got it.
But they are clearly different
follow curriculum I picked that one too and the formula will give u different answers but the one given in curriculum makes sense
On this note, do the formulas calculating the target payout ratio match in schweser & curriculum readings?