Perform a valuation of Singapore Airlines based on your analysis in part a) using the following steps

i) Formulate a realistic model of revenue growth over the next ten years, and constant thereafter.

ii) Formulate a model for profit margins for the next ten years. You may assume that profit margin remains constant or you may choose to vary it over the first ten years. Assume a constant profit margin from year ten onwards.

iii) Carry out a dividend discount model valuation based on i) and ii) as follows.

You must use and justify an appropriate weighted average cost of capital for your firm.

FY 12-13 FY 13-14 FY 14-15 FY15-16FY 16-17 Revenue Expense:s Operating Profit Profit Margin Per Share Data (cents) Earning Per Share Dividend Per Share Ratio (%) Return on Equity Return on Total Asset 15098.2 15243.915565.5 15238.714868.5 1486914984.6 15156.1 14557.5 14245.7 622.8 1.52% 1.70% 2.63% 4.47% 4.19% 229.2 259.3 409.4 681.2 32.2 30.6 31.4 69 30.5 23 46 45 20 2.9 2.7 2.9 6.4 2.8 2 1.9 2.7 3.6 1.8 Source Annual Reports -http://www.singaporeair.com/en_UK/sg/about-u