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I looked up Yahoo Finance online, the New Zealand Stock Exchange website and First NZ Capital for various information about Air New Zealand.^1 On 24

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I looked up Yahoo Finance online, the New Zealand Stock Exchange website and First NZ Capital for various information about Air New Zealand.^1 On 24 March 2014 the price of Air New Zealand stocks was NZ$1, 885. Dividends over the year equaled 9.5 NZ cents per share. The average return on alternative assets was 5.3% over the previous five years. [Ref: MMR 130-132, Notes 4-2] What price should you expect to pay for Air New Zealand stocks in March 2013 if you knew the information given in the question? If you knew the information in the question and in 2013 the current price of Air New Zealand stock was NZ$1.495 a share, would it be worth buying Air New Zealand shares? Explain. Parts a) and b) make it seem easy to work out if you should or should not buy a company's stock. Why isn't this the case in practice

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