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What is Finance? Case Study 2022

   

Added on  2022-09-18

6 Pages1004 Words27 Views
Running head: FINANCE 1
FINANCE

FINANCE
Contents
Case Study 1....................................................................................................................................3
Part 1)...........................................................................................................................................3
Part 2)...........................................................................................................................................3
Part 2................................................................................................................................................5
References........................................................................................................................................6

FINANCE
Case Study 1
Part 1)
Description
ANZ
Bank
Westpac
bank
Total Assets (Book value) 981137 906626
Shareholder's Equity 60794 65507
Total liabilities (book value) 920343 841119
Number of shares (millions) 26.49 37.5
Market capitalization
808420
0 10300000
Net income 5968 6784
Dividends paid 160 174
Calculations
Market to book value ratio
ANZ
Bank
Westpac
bank
ANZ
Bank
Westpac
bank
Market value of equity
808420
0 10300000 8.24 11.36
Book value of equity 981137 906626
Return on Equity
ANZ
Bank
Westpac
bank
ANZ
Bank
Westpac
bank
Net income 5968 6784 9.82% 10.36%
Shareholder Equity 60794 65507
Dividends per share
ANZ
Bank
Westpac
bank
ANZ
Bank
Westpac
bank
Annual dividend 4471 6291 168.78 167.76
Number of outstanding shares 26.49 37.5
Sustainable growth rate
per annum
ANZ
Bank
Westpac
bank
ANZ
Bank
Westpac
bank
Return on equity * Retention
rate 9.82% 9.82% 2.46% 0.71%
(Net income - Dividend)/Net
income 25.1% 7.3%
Intrinsic value per share
ANZ
Bank
Westpac
bank
ANZ
Bank
Westpac
bank
Expected dividend per share 1.74 1.6 12.43 7.48
(Cost of equity - dividend
growth rate) 14.00% 21.40%

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