5

Company Div_0 Payout_Ratio			Growth_Years_1_to_3	ROE	Ke	Market_Price
Astral	R0.82	59.9%	21.8%	10.2%	19.8%	R7.97
RCL	R0.68	54.4%	22.9%	6.3%	16.2%	R8.94
Woolies	R1.17	46.2%	33.3%	13.9%	12.5%	R47.98

Use the following information to answer Question 1:

You have been provided with information on 4 shares listed on the JSE. The information includes the last dividend paid, payout ratio, explicit period growth rates, ROEs, expected returns (Ke) and latest market prices.

Question 1

Based on the current market price, Woolies underpriced (underpriced will be negative)/overpriced (overpriced will be positive) by:

1. 2.89%

2. 2.3%

3. 3.6%

4. 1.91%

5. 2.43%