Below are earnings per share for Qantas Airways Limited. The required rate of return is 5.87%....
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Below are earnings per share for Qantas Airways Limited. The required rate of return is 5.87%. The growth rate is forecasted at a constant rate of 2%. Number of share outstanding is 1,491.00. 2020 Residual Earnings (RE) Valuation Comprehensive income to common Beginning of period CSE Required: a) Calculate the value per share using the pro forma provided 158 3,433 2021 (1,141) 816 3,591 2,450 2022 b) In your opinion, how did the recent pandemic affect the valuation of the company? 2023 1,499 1,627 3,266 3,717 2024 (10 marks) (5 marks) c) Calculate the implied growth rate in RE, if the current market price of the stock is $8.12. (5 marks) d) In the context of investment decision-making, what are the advantages of using the reverse-engineering approach instead of computing the intrinsic value? (5 marks) Below are earnings per share for Qantas Airways Limited. The required rate of return is 5.87%. The growth rate is forecasted at a constant rate of 2%. Number of share outstanding is 1,491.00. 2020 Residual Earnings (RE) Valuation Comprehensive income to common Beginning of period CSE Required: a) Calculate the value per share using the pro forma provided 158 3,433 2021 (1,141) 816 3,591 2,450 2022 b) In your opinion, how did the recent pandemic affect the valuation of the company? 2023 1,499 1,627 3,266 3,717 2024 (10 marks) (5 marks) c) Calculate the implied growth rate in RE, if the current market price of the stock is $8.12. (5 marks) d) In the context of investment decision-making, what are the advantages of using the reverse-engineering approach instead of computing the intrinsic value? (5 marks)
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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