Question: Please answer question 2,3,4 The following table shows shows BWP Trust's dividend history. Date BWP Dividends in $ 24/6/2010 0.118671 24/6/2011 0.11834 25/6/2012 0.077501 24/6/2013
Please answer question 2,3,4
The following table shows shows BWP Trust's dividend history.
Date
BWP Dividends in $
24/6/2010
0.118671
24/6/2011
0.11834
25/6/2012
0.077501
24/6/2013
0.140495
26/6/2014
0.1471
26/6/2015
0.1577
29/6/2016
0.1679
29/6/2017
0.1745
28/6/2018
0.1778
27/6/2019
0.1049
29/6/2020
0.1829
29/6/2021
0.1829
29/6/2022
0.1829
2. Calculate the share price of the BWP Trust using the dividend discount model identified in question 1. ( I have usedthe Gordon growth model in question 1)
((Hint: Assessment 1 can provide the other input(s) required to estimate the value of BWP's share))
(( I have attached the data sheet from assessment 1 below))
Paste B I UV A $ ~ % " .00 Conditional Format Cell Sort & Formatting as Table Styles Format v Filter K36 X V fx A B C D E F G H J K L M N O P Q R S 1 BWP BWP_Ret Date AORD AORD_Ret Beta 0.460699 Rf 1/5/2000 0.371554 1/5/2000 3,040.60 Correlation 0.400539 3.600% W N 1/6/2000 0.356983 -0.04001 1/6/2000 3,257.60 0.068936 1/7/2000 0.378484 0.058486 1/7/2000 3,213.60 -0.013599 ER STD 1/8/2000 0.382307 0.01005 1/8/2000 3,261.70 0.014857 BWP 0.87% 4.64% 1/9/2000 0.378484 -0.01005 1/9/2000 3,246.10 -0.004794 Annualised 10.94% 16.08% 1/10/2000 0.382307 0.01005 1/10/2000 3,203.90 0.013085 1/11/2000 0.393777 0.029561 1/11/2000 3,222.00 0.005633 AORD 0.30% 4.03% 1/12/2000 0.390336 -0.00878 1/12/2000 3,154.70 -0.021109 Annualised 3.67% 13.98% 10 1/1/2001 0.431197 0.099557 1/1/2001 3,291.50 0.042450 11 1/2/2001 0.431197 1/2/2001 3,274.10 -0.005300 Weight BWP AORD STD ER Sharpe 12 1/3/2001 0.434392 0.007382 1/3/2001 3,096.90 0.055641 0.1 0.9 13.30% 4.40% 0.060 13 1/4/2001 0.43519 0.001835 1/4/2001 3,270.30 0.054480 0.2 0.8 12.81% 5.12% 0.119 14 1/5/2001 0.439981 0.010949 1/5/2001 3,317.20 0.014239 0.3 0.7 12.52% 5.85% 0.180 15 1/6/2001 0.459146 0.042637 1/6/2001 3,425.20 0.032039 0.4 0.6 12.44% 6.58% 0.239 16 1/7/2001 0.486947 0.058787 1/7/2001 3,270.80 0.046125 0.5 0.5 12.59% 7.31% 0.294 17 1/8/2001 0.509422 0.045121 1/8/2001 3,217.80 0.016337 0.6 0.4 12.94% 8.03% 0.343 18 1/9/2001 0.532728 0.044734 1/9/2001 2,988.00 -0.074094 0.7 0.3 13.49% 8.76% 0.382 19 1/10/2001 0.539253 0.012174 1/10/2001 3,185.30 0.063942 0.8 0.2 14.21% 9.49% 0.414 20 1/11/2001 0.545152 0.01088 1/11/2001 3,276.90 0.028351 0.9 0.1 15.08% 10.21% 0.439 21 1/12/2001 0.526615 -0.03459 1/12/2001 3,360.00 0.025043 22 1/1/2002 0.524932 -0.0032 1/1/2002 3,404.00 0.013010 Use of Solver 23 1/2/2002 0.559927 0.064538 1/2/2002 3,358.60 0.013427 BWP AORD STD ER Sharpe 24 1/3/2002 0.546804 -0.02372 1/3/2002 3,363.30 0.001398 1.818785 -0.818785 26.79% 16.90% 0.496 25 1/4/2002 0.559927 0.023716 1/4/2002 3,299.50 -0.019152 26 1/5/2002 0.568676 0.015504 1/5/2002 3,325.10 0.007729 CAPM 6.34% 10.94% 27 1/6/2002 0.559927 -0.0155 1/6/2002 3,163.20 -0.049916 28 1/7/2002 0.595124 0.060963 1/7/2002 3,032.60 0.042164 Conclusion Undervalued Price will rise and return will drop 29 1/8/2002 0.626925 0.052057 1/8/2002 3,073.70 0.013462 30 1/9/2002 0.586038 -0.06744 1/9/2002 2,928.30 0.048460 31 1/10/2002 0.622382 0.060169 1/10/2002 2,995.00 0.022522 32 1/11/2002 0.626925 0.007273 1/11/2002 3,025.20 0.010033 33 1/12/2002 0.60421 -0.03691 1/12/2002 2,975.50 -0.016565
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