Questions

1. Assume that the dividends of ANZs ordinary shares will grow at 3.57% forever and that the most recent annual dividend paid by ANZ was $0.83. Assume the beta for ANZ stock was 0.9, the yield on government bonds was 2% and the expected return to the ASX200 was 7%. What is the price of ordinary shares today? Should we buy the share today? What type of analysis are you using?

2. If ANZ also issued preference which paid the same dividend asANZs total dividend for 2012, and these shares had a required return of 6%, what would be their price today?

mail Outlook, Gmail and Yahoo Mail. All in one app. ALL ORDS 6.112.00 147.10(+0.78%) AUD/USD 0.6951 +0.003 (+0.4349%) ASX 200 5,991.80 +50.20 (+0.14%) OIL 36.83 -0.46 (-1.23%) GOLD 1,719.30 +14.50(-0.65%) (-) Australia markets open in 7 hours 48 minutes BTC-AUD 14,053.80 119.37 (+0.86%) Australia and New Zealand Banking Group Limited (ANZ.AX) ASX - ASX Delayed price Currency in AUD Add to watchlist Quote lookup 19.21 +0.29 (+1.53%) At close: 4 June 4 10PM AEST Summary Chart Statistics Historical data Profile Financials Analysis Options Holders Sustainability Previous close 18.92 Market cap 51.891B 1D 5D 1M 6M 1M 6M YTD 1y 5Y Max Full screen 19.90 Open 19.55 Beta (SY monthly 0.92 WORLD MARKETS Bid 21.15 x 0 PE ratio (TTM) 9.51 19.533 Ask 19.23 x 0 EPS (TTM) 2.02 19.23 ur Day's range 18.93 - 19.79 Earnings date 29 Apr 2020 Al Managed Accounts 19.92 1880 52-week range 14.10. 28.95 Forward dividend & yield N/A (N/A) Volume 15,824,943 Ex-dividend date 10 Nov 2019 10 am 12 pm 02 pm 04 pm Avg. volumne 12,672.996 ly target est 28.83 Achieving Over 100% Compound Return [Verified