Use the

information below to answer question 15 .

Shandu Limited announced total liabilities of R500

million and total assets of R790 million at the end of 2019. Shandu Limited has

25 million shares outstanding, ROE of 22.30% and dividend payout of 80%. The

firm’s required rate of return is 10.22% and its market price is R40.58.

Determine the

value of Shandu Limited using a single-stage residual income model.