# Sum of parts analysis for Wesfarmers valuation

THREE QUESTION INTRODUCTION 1 Question 1 1.1 Sum of parts analysis that help to analyse that combines value of business is grater than value of each individual business. Question 1 1 1.1 Sum of parts analysis that help to analyse that combines value of business is grater than value of each individual business.
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THREEQUESTION
Table of ContentsINTRODUCTION...........................................................................................................................1Question 1........................................................................................................................................11.1 Sum of parts analysis that help to analyse that combines value of business is grater thanvalue of each individual business...........................................................................................11.2 Application of Sum of part analysis with the help of DCF valuation of the Wesfarmers.1.........................................................................................................................................................4Question 2......................................................................................................................................10Question 3......................................................................................................................................103.1 Strengths and weakness of their leadership attributes and style.....................................103.2 Leadership problems have arisen during the period of their leadership.........................12CONCLUSION..............................................................................................................................12
1.2 Application of Sum of part analysis with the help of DCF valuation of the Wesfarmers.Table 1: CAPM AssumptionsCAPM AssumptionsK(e)4.84%RFR1.8%Beta0.95Rp5%Table 2: Enterpsire Value (EV)Enterpsire Value (EV)Current Market Price 40 Diluted Shares 1,123 Market Capitalisation 45,178 Long Term Liabilities 5,671 Less: Cash & Cash Equivalents 611 Enterprise Value (in lacks) 50,238 Table 3: Debt Equity WeightageDebt Equity WeightageE/(D+E) @ Enterprise Value88.85%D/(D+E) @ Enterprise Value11.15%Interest Rate (%)8%Tax Rate (@)30%WACC CalculationWACC4.91%Table 4: Income StatementFiscal year ends in June. AUD in millions except per share data2012-062013-062014-062015-062016-06TTMRevenue579365970460181621026551266943Cost of revenue3840639617415434314545525461122

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