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Please show all working out for a) and b) Question 2 (COMPULSORY) (20 marks) After extensive research, you have also gathered data on key financial

Please show all working out for a) and b)image text in transcribed

Question 2 (COMPULSORY) (20 marks) After extensive research, you have also gathered data on key financial metrics of the firm and corresponding share. Given the information below: Dividend Yield at To 1.92% EPS at T 407 cents Trailing Price / 10.19 Earnings Retention Rate 89.63% ROE 5.32% k 7.93% WACC 7.93% T1 T2 T3 T4 T5 and beyond 3% Growth FCFF perpetuity FCFF 2493 2224 2446 2691 2963 3264 a) What is the price of a share according to the DDM, assuming dividends are paid in perpetuity? (5 marks) b) What is the value of the firm according to the FCFF model? (15 marks)

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