Consider the 2022 Annual Report for Wesfarmers Ltd (WES). Briefly illustrate how WES governance is organized. Do you notice any strategies in place to align manager and shareholder interests at WES based on the Annual Report? Provide one example. (3 marks) b) What is the net working capital for WES in 2021 and 2022? What type of current asset management strategy is the company pursuing? Explain why, and what are the pros and cons of this strategy. (3 marks) c) Consider the WES 2022 Annual Report. Identify two of the major risks discussed in this report. Are these risks systematic or unsystematic? Why? (2 marks) d) You are trying to value WES shares today (end of 2022). Assume the current price of WES shares are $44.13. Assume that the total dividend paid by WES in 2021 was a lump sum. You also estimate that for the next two years dividends will grow respectively at 20% and 15% per year. After this (starting in time 3) you estimate dividends will grow at a constant rate of 1.5% forever. Assume that today the Australian 10 year government bond has a yield of 3.95%, the market risk premium is 6% and the beta of WES is 0.95. Based on this price would you purchase WES shares? Why or why not? (7 marks) e) What was the market capitalization of WES on the 31 June 2022, assuming that the total number of shares outstanding is the same as at the end of 2021? (Use the closing price on that day). (2 marks) f) What source of funding (non-current) is WES primarily using to finance its operations? What are the advantages and disadvantages of this source of financing? (3 marks) g) Assume that WES would like to replace its non-current lease liabilities (in 2022) with a new issue of bonds. Assume that the issue will have a coupon rate of 5% with a 10 year maturity. Assume the bonds are semi-annual coupon bonds and each have a face value of $1,000 and the required rate of return for similar bonds in the market is 4.5%. What would be the issuing price of these bonds? How many bonds will WES have to issue in order to replace its non-current lease liabilities? (5 marks)