Consider investing in Woolworths Limited (WOW). Make an investment recommendation based on the theoretical value of WOW. Any assumptions that you rely upon should be clearly stated in the assignment. This requires you to complete several steps:
a. Undertake an industry and company analysis (see supplementary resources on Blackboard) (20 Marks).
b. Select the most appropriate present value model and derive a theoretical price for the share (8 Marks).
c. Determine whether you would invest in the company's ordinary shares (2 Marks).
for part B. how can I derive the theoretical value of Woolworths share. do I use interim or final dividend fin gordon growth model formula. and how can I find constant growth rate of dividends?