Recommendation based on the theoretical value

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Reference no: EM131859721

Consider investing in Woolworths Limited (WOW). Make an investment recommendation based on the theoretical value of WOW. This requires you to complete several steps: a. Undertake an industry and company analysis. b. Select the most appropriate present value model and derive a theoretical price for the share. c. Determine whether you would invest in the company’s ordinary shares. You should assume that the required rate of return is given by the Capital Asset Pricing Model, the equity market risk premium is 5%, and the risk free rate is equal to the RBA cash rate at the time of your analysis. (Total 3 pages of A4)

Reference no: EM131859721

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