2. Assuming the same annualized dividend dividend rate of 7.90 RMB, using the Gordon's growth model compute the discount rate required to produce the prevailing index of 358 under different growth assumptions, specifically assuming an 8% real growth rate of dividends to perpetuity, rather than a gradually slackening rate of growth as in Question 1 above. (20% Marks) Mr. Gabriel Abdalla has recently decided to buy some investments in China and is using the S%P China BMI Index as his Benchmark to assess his Equity market valuations using Gordon's and other acceptable models. Information retrieved from the latter reveals the below information. The S&P China BMI Index on 30th October 2018 was 358. Forecasted 12-months EPS for the composite is 18.00 RMB and the current annual dividend rate for the composite is 7.90 RMB. Assuming an 8% inflation-adjusted equity discount rate , a 30 year decline in dividend growth rates from an initial growth rate of 8.25% and a terminal sustainable growth rate to perpetuity of 4.25%