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s for the Assignment and Individual Presentation Case study 1 (Valuation of stocks): (50 marks) You are an analyst employed by BT Wealth Management Limited,
s for the Assignment and Individual Presentation Case study 1 (Valuation of stocks): (50 marks) You are an analyst employed by BT Wealth Management Limited, a fund management firm operating in Melbourne's financial district. You have been approached by Ashford Masawi who recently inherited $20 million dollars from his late aunt's estate. Mr Masawi is considering investing all his funds in one stock chosen from any one of the following sectors of the All Ordinaries Index of companies on the Australian Securities Exchange: transportation, consumer durables & apparel, and banks. He does NOT want you to select across sectors but whatever sector is picked, choose any two stocks listed in the ASX and then perform calculations to determine which one of them would be suitable for your client. Using the annual report of either 2018 or 2019 and yahoo finance (https://au.finance.yahoo.com) complete the following table for each of the two companies. Information to be extracted from the annual reports should include the followings: Description Company A Company B Total assets (book value) ($m) Total Liabilities (book value) ($m) Number of shares (millions) Market capitalisation ($m) Net income ($m) Dividends paid ($m) 1 mark for each of the items in the table above except for market capitalisation which will be awarded 2.5 marks for each company Requirements: (1) Perform the following calculations: a) market value of equity-to-book value of equity ratio (5 marks) b) return on equity (ROE) (5 marks) c) dividends per share (5 marks) d) sustainable growth rate per annum (5 marks) e) intrinsic value per share assuming a required rate of return of 14%
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