Consider investing in wool worths limited

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Reference no: EM131856774

Consider investing in Woolworths Limited (WOW). Make an investment recommendation based on the theoretical value of WOW. This requires you to complete several steps:

a. Undertake an industry and company analysis.

B. Determine whether you would invest in the company’s ordinary shares.

You should assume that the required rate of return is given by the Capital Asset Pricing Model, the equity market risk premium is 5%, and the risk free rate is equal to the RBA cash rate at the time of your analysis.

Additional Infomation

Company - Market - sector

dividend 3.3%- 4.2%- 4.4%

Franking 100%

Stability 98.2% - 91.6% - 96.6%

Earnings 0.91- 1.07 - 0.77

P/E ratio 22.20 - 16.46 - 15.02

P/B ratio 3.44 - 1.49 - 2.36

P/E Growth 2.04 - 1.76 - 2.04

P/S Ratio .059 - 1.77 - .60

Beta 0.86 - 0.92 - 0.85

Current ratio 0.79 - 1.58 - 0.92

Quick ratio 0.15 - 1.03 - 0.41

Debt/Equity 31.8%- 26% - 27.2%

Earnings stability 53.9% - 45.3% - 53.9%

income coverage 12.01 - 6.89 - 13.61

Current share price = 24.710

Reference no: EM131856774

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