Consider the following information regarding Seek Ltd (ASX:SEK) in Australia Year 0 Year 1 Year 2 EPS $1.45 $1.67 DPS $0.61 $0.68 Book Value of Share $19.00 Required Equity Return 5% Share Price on ASX $21 Required:a) Assuming Seek will close operations in 2 years’ time, value an ordinary share in this companyusing the Residual Income Method.b) Is Seek fairly valued on the ASX? Please explain fully your response.

Consider the following information regarding Seek Ltd (ASX:SEK) in Australia Year 0 Year 1 Year 2 EPS $1.45 $1.67 DPS $0.61 $0.68 Book Value of Share $19.00 Required Equity Return 5% Share Price on...

Consider the following information regarding Seek Ltd (ASX:SEK) in Australia

Required:

a) Assuming Seek will close operations in 2 years’ time, value an ordinary share in this company

using the Residual Income Method.

b) Is Seek fairly valued on the ASX? Please explain fully your response.

Jun 02, 2022