Question 1: Explain the difference between what was calculated and share price per stock exchange. The share price per stock exchange on date of released of Financial statement on 2020 is $63.20 and the calculated value per share is $89.96

Question 2: Change your assumptions in the calculation above in order to make your valuation match the price of the security. Are those assumptions realistic?

Question 3: Do you recommend buying/holding/selling this company and why?

Net income BV, 2020 BV, 2019 Dividends Number of shares outstanding 5,595,000 Update from most up to date FS on SEDAR.com 57,696,000 Update from most up to date FS on SEDAR.com 54,587,000 Update from most up to date FS on SEDAR.com 2,234,000 Update from most up to date FS on SEDAR.com 648,094,938 Look up number of shares outstanding ROE 10.25% a. Return on Opening Equity (NI/Total Shareholder Equity for prev. year) Div payout ratio 39.93% b. Dividend Payout Ratio (Dividends paid during year/NI) Rf Market risk premium Beta 0.47% Look up at: http://www.market-risk-premia.com/ca.html 7.3% Look up at: http://www.market-risk-premia.com/ca.html 1.28 Look this up for your company (Google finance, Yahoo finance) DET 9.9% CAPM E(Rjt) = Rs(1 Bj) + B; E(Rmt) Cost of Equity Capital = Abnormal earnings BV, 2018 BV, 2019 BV, 2020 61,248,426 65,019,579 69,022,928 BVt+1 = = BV+x(1 + (1 - k)roe) Diff actual earnings and accretion ox, 2018 OX, 2019 OX, 2020 229,222.26 243,335.80 258,318.33 0X4+1 = [ROE E(R)]BV = 1 2 3 YEAR PV of abnormal earnings 605,170.35 229,222 + 1.098524 243,336 + 1.206754979 258,318 1.325649306 Est. Value of firm 58,301,170 = BV (2020) + PV of abnormal earnings Est. Value per share $ 89.96 = Value of firm/Number of shares outstanding