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Go to https://au.finance.yahoo.com/quote/ANZ.AX and click on 'Statistics' 1) How many ANZ shares are outstanding? (1 mark) 2) What is the current market capitalisation of ANZ?
Go to https://au.finance.yahoo.com/quote/ANZ.AX and click on 'Statistics' 1) How many ANZ shares are outstanding? (1 mark) 2) What is the current market capitalisation of ANZ? (1 mark) 3) Show how the market capitalisation and the number of shares outstanding are related. (1 mark) 4) Last year's dividend was $0.8 per share. Suppose that this dividend is expected to increase by 2% per year and that investors currently require an 8% per annum expected return to invest in the shares of banks with a similar risk to ANZ. Use the dividend valuation model to value ANZ shares. (2 marks) 5) Do the shares look undervalued or overvalued by the market, compared to your valuation? Given your valuation is correct, how to take advantage of the mispriced ANZ shares. Explain your reasoning (2 marks) 6) What behaviour of investors can be used to explain bubbles and crashes in the share market? Explain your
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