Consider the $2023$ Annual Report for Lend Lease Limited $($LLC$).$

$1.$ Briefly comment on how LLC governance is organized. Do you notice any strategies in place to

align manager and shareholder interests at LLC based on the Annual Report? Provide one

example.

$2.$ What is the net working capital for LLC in $2022$ and $2023?$ What type of working capital

management strategy is LLC probably pursuing? What are the advantages and disadvantages

of this strategy?

$3.$ Identify in the annual report two major risks that LLC faces. Are these risks systematic or

unsystematic? Explain your answer.

$4.$ Say you are trying to value LLC shares as of $30$ June $2023.$ The closing LLC price for this day

was $$7\mathrm{.}64.$ Assume that LLC will pay a dividend of $$0\mathrm{.}20$ in $2024$ and after this you estimate

dividends will grow at a constant rate of $5\%$ forever. Assume the Australian $10$ year government

bond has a yield of $4\mathrm{.}2\%,$ the market risk premium is $6\mathrm{.}5\%$ and the beta of LLC is $0\mathrm{.}82.$ Based

on your valuation, should you buy LLC shares? Explain your answer. $($

$5.$ Calculate the market capitalization of LLC on $30$ June $2023.$ Assume that the total number of

shares outstanding on this day is the same as that reported in the annual report.

$6.$ What source of funding $($non$-$current$)$ is LLC primarily using to finance its operations? What are

the advantages and disadvantages of this source of financing?