The company you are asked to analyze in the report is Fortescue Metals Group Limited (FMG.AX). FMG is an Australian iron ore company.

Part A - Quantitative analysis 1. Estimate the value (per share) of the company using the Free-Cash-Flow-to Equity (FCFE) method. 2. Provide a brief comment on the dividend policy of the firm

Guidence: 1. Part A (i), you are only required to look up FCFE for the firm over the last two years. The biggest challenge is finding the appropriate "discount rate". Revise FIN20014 on the relevant topics early (i.e. internal based models such as Weighted Cost of Capital, WACC or Risk-based models such as Capital Asset Pricing/Market models are fine). 2. Part A (ii), you are only required to look up dividends paid by the firm over the last 2 years. It is also a good exercise using the dividend discount model to investigate the multiples the market was over the last few years. Apply your knowledge from FIN20014 on dividend policy.