Domino Pizza Case Study Tasks - Assignment Solution

CASE STUDY 1

Based on the given information, following are the closing adjusted Domino Pizza Enterprise Limited as of June 30th. 

All the amounts listed below are in AUSTRALIAN Currency.

Based on the above data, below is the holding return period for Domino Pizza

Kindly note: P1 = ending value, P0 = beginning value and D1 = Dividends paid in that period

To Calculate the Holding period return, the following formula is used. 

HPR = (P1 + D1 / P0) -1           

Below is the holding period return for Retail Food, the formula used to calculate is the same i.e. HPR = (P1 + D1 / P0) -1           

TASK 2

In order to get the expected return value, the average of the last 5 years returns of both corporation are taken. 

For Domino Pizza

The Expected return= 49% (based on the average of the last five year’s return)

=0.05-0.21+0.95+0.71+0.96/5=49%

For Retail Food Group Limited

The expected return= -4% (based on the average of the last five year’s return)