5 Company Div_0 Payout_Ratio Growth_Years_1_to_3 ROE Ke Market_Price Astral R0

Subject:FinancePrice: Bought3

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5

Company Div_0 Payout_Ratio			Growth_Years_1_to_3	ROE	Ke	Market_Price
Astral	R0.82	59.9%	21.8%	10.2%	19.8%	R7.97
RCL	R0.68	54.4%	22.9%	6.3%	16.2%	R8.94
Woolies	R1.17	46.2%	33.3%	13.9%	12.5%	R47.98

 

 

Use the following information to answer Question 1:

 

You have been provided with information on 4 shares listed on the JSE. The information includes the last dividend paid, payout ratio, explicit period growth rates, ROE’s, expected returns (Ke) and latest market prices.

 

Question 1

 

Based on the current market price, Woolies underpriced (underpriced will be negative)/overpriced (overpriced will be positive) by:

 

1. 2.89%

 

2. 2.3%

 

3. 3.6%

 

4. 1.91%

 

5. 2.43%