What was the market capitalization of kgn on january

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Reference no: EM132903131

Question 1: What is the Net Working Capital for KGN both in 2019 and 2020. What type of current asset management strategy is the company pursuing? Explain why and what are the pros and cons of this strategy.

Question 2: Michael Bain is one of your clients and he is interested in purchasing the ordinary shares of KGN which is currently priced, in the stock market, at $17.99. Assume that the total dividend paid by KGN in the 2020 year was paid as a lump sum (at once) today. You estimate that dividends will grow at a constant rate of 3.5% forever. Assume that today the Australian 10Y Government bond has a yield of 1.15%, the market risk premium is 4.55% and the beta of KGN is 0.72. Based on this price would you advise your client to purchase the share? Why or why not?

Question 3: What was the market capitalization of KGN on 29 January 2021, assuming that the total number of shares outstanding is the same as per the end of the 2020FY? (Use the closing price on that day).

Attachment:- Kogan Ltd.zip

Reference no: EM132903131

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