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Question 5 (30 marks) OZ Minerals (OZL) is an ASX listed copper and gold mining...

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Question 5 (30 marks) OZ Minerals (OZL) is an ASX listed copper and gold mining company. Two comparable firms for OZL are Regis Resources (RRL) and IGO Limited (IGO). Current information on the three stocks are: OZL RRL IGO Price $9.95 $5.05 $5.09 Net Income $164 million $163 million $176 million Historical Cash Flow $510 million $276 million $372 million Historical Dividends $0.23 per share 324 million $2,980 million $0.16 per share 508 million Shares Outstanding Total Equity $0.14 per share 591 million $1,849 million $716 million a) Use the dividend discount model to determine the fundamental value of OZL. You have a required rate of return of 5.5%. b) Using the data above determine the relative valuation of OZL based on RRL and IGO and two financial ratios. c) Based on your analysis above, do you think OZL is a good investment at its current price? Why or why not? Discuss any uncertainty that you have about your valuation

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