Question
For the 2017-2018 financial year of Wesfarmers Limited, calculate the following measures for Wesfarmers Limited: (a) Return on equity [3 marks] (b) Dividend payout ratio
For the 2017-2018 financial year of Wesfarmers Limited, calculate the following measures for Wesfarmers Limited:
(a) Return on equity [3 marks]
(b) Dividend payout ratio [3 marks]
(c) Price/Book (P/B) ratio. [3 marks]
3. Using the data provided, derive the sustainable growth rate. [4 marks]
4. Given the return on equity estimate of 9.00% for Wesfarmers and your previous calculations, use the DDM (discount dividend model) to estimate the price of a share of Wesfarmers.
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
