Question
You are analyzing the stock of Ansell Limited, a health-care company ( Australian Stock Exchange:ANN). The current stock price is A$ 9.74. The companys dividend
You are analyzing the stock of Ansell Limited, a health-care company ( Australian Stock Exchange:ANN). The current stock price is A$ 9.74. The companys dividend per share for the current fiscal year was A$0.27. You expect the dividend to increase by 10% for the next 7 years and then increase by 4% per year forever. You estimate the required return on equity of Ansell Limited to be 7%. A) Build an excel model to estimate the current value of the stock using the dividend growth model based on the above assumptions. Rename the worksheet as question 3. B) Judge whether ANN is undervalued, fairly valued, or overvalued.
please answer in excel
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