6 of 13 + 90% To marDT c) Andongkun has a cost of equity capital of 10% and a weighted average cost of capital of 8%. Assume for simplicity that all assets are operating assets, all non-current liabilities are financial liabilities and that there are no current financial liabilities. Round all your quantitative answers to the nearest TWD million. Income statement for the year ended 31/12/2021 31/12/2020 TWD million TWD million Sales revenue 39,553 37,669 Gross profit 11,470 11,301 Operating expense 3,758 3,767 Net financial expense (before tax) 2,862 3,014 Tax on operating income 1,257 1,205 Comprehensive earnings 4,165 3,917 Statement of financial position at 31/12/2021 31/12/2020 TWD million TWD million Non-current assets 75,338 70,064 Current operating assets 16,574 15,068 Current operating liabilities 37,670 33,902 Non-current liabilities 37,668 42,188 Common shareholders' equity 35,410 33,327 (i) Use simple forecasting method SF3 to forecast 2022 operating income, comprehensive earnings, abnormal operating income and abnormal earnings. (5 marks) (ii) Using the 2021 growth rates of net operating assets and common shareholders' equity as the permanent growth rates, calculate the estimated intrinsic value of net operating assets and common shareholders' equity at the end of 2021 under SF3. (3 marks) (iii) Calculate the dividend payout ratio implied by the growth rate of common shareholders' equity that you used in (ii). (2 marks) QUESTION CONTINUES ON NEXT PAGE 6 of 13 + 90% To marDT c) Andongkun has a cost of equity capital of 10% and a weighted average cost of capital of 8%. Assume for simplicity that all assets are operating assets, all non-current liabilities are financial liabilities and that there are no current financial liabilities. Round all your quantitative answers to the nearest TWD million. Income statement for the year ended 31/12/2021 31/12/2020 TWD million TWD million Sales revenue 39,553 37,669 Gross profit 11,470 11,301 Operating expense 3,758 3,767 Net financial expense (before tax) 2,862 3,014 Tax on operating income 1,257 1,205 Comprehensive earnings 4,165 3,917 Statement of financial position at 31/12/2021 31/12/2020 TWD million TWD million Non-current assets 75,338 70,064 Current operating assets 16,574 15,068 Current operating liabilities 37,670 33,902 Non-current liabilities 37,668 42,188 Common shareholders' equity 35,410 33,327 (i) Use simple forecasting method SF3 to forecast 2022 operating income, comprehensive earnings, abnormal operating income and abnormal earnings. (5 marks) (ii) Using the 2021 growth rates of net operating assets and common shareholders' equity as the permanent growth rates, calculate the estimated intrinsic value of net operating assets and common shareholders' equity at the end of 2021 under SF3. (3 marks) (iii) Calculate the dividend payout ratio implied by the growth rate of common shareholders' equity that you used in (ii). (2 marks) QUESTION CONTINUES ON NEXT PAGE