Wesfarmers is not independent

Running Head: FINANCE 1
FINANCE

Running Head: FINANCE
Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
Valuation technique 1......................................................................................................................5
Assumptions taken.......................................................................................................................5
Limitations...................................................................................................................................6
Valuation Technique 2.....................................................................................................................6
Assumptions.................................................................................................................................7
Limitations...................................................................................................................................7
Question 5........................................................................................................................................7
Question 6........................................................................................................................................8
Question 7........................................................................................................................................8
References........................................................................................................................................9

Running Head: FINANCE
Question 1
Wesfarmers is one of the most renowned retail group globally, and is a popular name
among the prospective and past stakeholder apart from the present ones. The company has
successfully managed to maximise the shareholder value as listed follows. The share prices of
the company have considerably increased to the tune of 35 per cent in past one year and have
passed the return percentages of the S&P/ASX 200 indices whose overall return was around 19
percent (Donald, 2020). The underlying forces behind the said maximised value of the shares are
the increased revenues, normal dividend payouts of $2.78 per share and additionally a special
dividend payment of $1.00 per share, apart from strategic business decisions. Hence, while the
investors must have bought the shares for a lower amount, the values of the investments have
increased by 35 percent. Recently, the shares traded at an all-time high of $ 42.04 per share (IG
Markets Ltd, 2019).
Question 2