Question
Using the following A-REIT forecast distribution per units (DPUS) over 2023-2028: DPU 2023 2024 2025 2026 2027 2028 4.6 c 13.6 c 18.6 c
Using the following A-REIT forecast distribution per units (DPUS) over 2023-2028: DPU 2023 2024 2025 2026 2027 2028 4.6 c 13.6 c 18.6 c 17.9 c 19.5 c 25.1 c (i) Calculate the current distribution yield if the current share trading price is $2.99 (2 marks) (ii) Determine the fair value if the required rate of return is 4.3% and the terminal capitalisation rate is 3.8% (8 marks)
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
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