Payout Ratio = Dividend Per Share / EPS (Basic) CapitaLand FY 2013

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note:

1FINANCE
Answer to Question 3.b:
Computation of WACC:
Payout ratio = Dividend Per Share / EPS (Basic)
CapitaLand FY2013
Dividend per share (Do) 0.1000 0.1500
EPS - Basic
$
0.280
$
0.358
Payout ratio 35.71% 41.88%
Return of Equity = Profit For The Year / Total Equity
CapitaLand FY2013
S$'000 S$'000
Profit for the year
1,504,269,00
0
305,600,00
0
Total Equity
24,300,475,00
0
8,635,364,00
0
Return of Equity 6.19% 3.54%
Dividend Growth Rate = Return of Equity x Retention Rate (1-Payout Ratio)
CapitaLand FY2013
Return of Equity 6.19% 3.54%
Retention Rate (1-Payout Ratio) 64.29% 58.12%
Dividend Growth Rate (g) 3.98% 2.06%
Discounted Rate (ke) = Dividend Per Share (D1) / Value of Stock (P0) + Dividend Growth Rate (g)
CapitaLand FY2013
Share price 1.489 1.578
FX Conversion Rate into SGD 1 1
Share price - SGD
1.4
9
1.5
8
Dividend per share (D1) 0.1040 0.1531
Share price - SGD (P0) 1.4890 1.5782
Dividend Growth Rate (g) 0.0398 0.0206
Discounted Rate (ke) 10.96% 11.76%