1. Question 2 : What is the expected return on IPO, in general and
Question 2 : What is the expected return on IPO, in general and of recent times?
Expected return Re = Rf + (Rm- Rf) β = Rf + (RPm) β Re = return of equity Rf = risk free return Rm = expected future return of market β = Beta RPm= market risk premium
1 year
Re = ( )
= (0.0027) 0.9
= 3.223%
3 years average
Re = ( – )
= ( ) 0.9
= 10%
5 years average
Re = ( – )
= ( ) 0.9
= 2.875%

2. Question 2 : What is the expected return on IPO, in general and
Question 2 : What is the expected return on IPO, in general and of recent times?
* Beta used is the Beta of competitor in market – Sime Darby 0.9

3. Question 2 : What is the expected return on IPO, in general and
Question 2 : What is the expected return on IPO, in general and of recent times?

4. Question 2 : What is the expected return on IPO, in general and
Question 2 : What is the expected return on IPO, in general and of recent times?
1 year From 1 July Jun 2012 Risk free rate using 1 year treasury bill average = 2.98% Rm = CAGR = (P1/P0)^(1/y) -1 Where, P1= current price P0= base price Y = number of years - 1 CAGR= ( / ) - 1 = 3.25 %

5. Question 2 : What is the expected return on IPO, in general and
Question 2 : What is the expected return on IPO, in general and of recent times?
3 years period From 2 July 2009 – 1 JUN 2012 Risk free rate using 3 years treasury bill average = % Market premium Rm = CAGR = (P1/P0)^(1/y) -1 Where P1= current price P0= base price Y = number of years - 3 CAGR= ( /1174.9)^(1/3) - 1 = %

6. Question 2 : What is the expected return on IPO, in general and
Question 2 : What is the expected return on IPO, in general and of recent times?
5 years period From 2 July 2007 – 1 JUN 2012 Risk free rate using 5 years treasury bill average = % Market premium Rm = CAGR = (P1/P0)^(1/y) -1 Where P1= current price P0= base price Y = number of years - 5 CAGR= ( / )^(1/5) - 1 = %

7. Question 3 : What is the intrinsic value of the company?

8. Question 3 : What is the intrinsic value of the company?
Intrinsic Value Current year = 2012 Next year = 2013 According to ECM Libra research date 4 June 2012 , Net DPS for Felda Global Venture will be 17.6 cent (2012) & 13.8 cent (2013) Dividend growth rate = (13.8 – 17.6)/17.6 = %

9. Question 3 : What is the intrinsic value of the company?
Intrinsic Value Stock value = D / k-g Dividend expected Required rate of return - Dividend growth rate
1 year average
13.8 cent
[ – (0.2159)]
= cent
3 year average
13.8 sen
[0.1- (0.2159)]
= cent
5 year average
[ – (0.2159)]
= cent

10. Question 3 : What is the intrinsic value of the company?