Activity $3$:

Different Investment Valuation Management Models $(20$ marks$)$

Choose two different asset valuation models, which can be used to evaluate the

ordinary shares of a listed company $($it could be the company for which you work or

any other$)$ for the purpose of deciding whether to invest or not.For each valuation model:

a$)$ Explain why you have chosen each particular model; $[4]$

b$)$ State the valuation you have reached and explain how you reached each

valuation ; $[4]$

c$)$ Compare the two valuations and explain the reasons for the variance; $[8]$

d$)$ Based on your evaluation is the share an investment opportunity or not?

In other words is your valuation greater or less than the current market

value.$[4$