RFG 1.49% 6.6¢ retail food group limited

SMH coverage of RFG, page-38

  1. 528 Posts.
    Assume FY NPAT of 50 mil. 10 yr refinance at 6%

    Annual debt repayments P+I 30 mil

    20 mil leftover -> 15 mil dividend

    By discounted dividend model:

    Value=15 mil/(6%-g) + 30 mil/(6%-g)/1.06^10= ?

    g=earnings growth rate

    @4% V=$1.5 bil
    @3% V=$1 bil
    @2% V=$750 mil
 
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