This semester in your Assignment you valued Santos Limited using relative valuation and instrinsic valuation.

1. Explain in your own words how information from comparable companies was used in your relative valuation of Santos Limited. In your answer you must explain how you selected the comparable companies that you used.

2. Describe in your own words how you estimated the cost of capital and growth rates that were used in the high growth and stable growth periods of your intrinsic valuation of Santos Limited. In your answer you must explain the assumptions that you made when estimating the cost of capital and growth rates. Your answer cannot be more than half an A4 page.

3. Explain in your own words how the reinvestment needs of Santos Limited should be estimated. In your answer you should include an explanation of how the following should be treated: (i) volatile capital expenditure and working capital (ii) operating leases and (iii) exploration and evaluation expenses (e.g. research and development costs). Your answer cannot be more than half an A4 page.