Consider the following information regarding Sensation Ltd, a listed company on ASX in Australia. EPS DPS...
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Consider the following information regarding Sensation Ltd, a listed company on ASX in Australia. EPS DPS Book Value of Share Required Equity Return Share Price on ASX Year 0 22.00 6% 23.80 Year 1 1.61 0.64 Year 2 1.79 0.75 Required: a) Assuming Sensation will close operations in 2 years' time, value an ordinary share in this company using the Residual Income Method. b) Is Sensation Ltd fairly valued on the ASX? Please explain fully your response. Consider the following information regarding Sensation Ltd, a listed company on ASX in Australia. EPS DPS Book Value of Share Required Equity Return Share Price on ASX Year 0 22.00 6% 23.80 Year 1 1.61 0.64 Year 2 1.79 0.75 Required: a) Assuming Sensation will close operations in 2 years' time, value an ordinary share in this company using the Residual Income Method. b) Is Sensation Ltd fairly valued on the ASX? Please explain fully your response.
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Question a Eps for first year 161 Eps for second year 179 Dividend fo... View the full answer
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