a)Salamander Corporation has just announced a 1.50 per share dividend for the upcoming year (with the company having 2 million shares outstanding). The board has also announced that both sales and targets are looking positive and that they expect dividends to grow at a rate of 5% per year indefinitely. The stock of Salamander Corporation has a beta of 0.8 while the expected market return and risk free rates are 22% and 5% respectively.

The company's accountant also estimate that with further investment, the future cash flows of the company are to be as follows (2014 is termed year zero):

2014	2015	2016	2017	2018-2030
6.4mil	7.2mil	7.5mil	8.2mil	8.5mil p.a

i) Calculate the return Salamander Corporation can expect from its stock. (2 %)

ii) Determine the value of the share in Salamander using the dividend discount model. (5 %)

iii) Determine the value of a share in Salamander using the discounted cash flow method. (10 %)

iv) Given that the industry average P/E ratio is 5 and its earnings figure is 6 millions, calculate the value of a Salamander share. (3 %)

b) Compare and contrast the alternative approaches of fundamental analysis and technical analysis in assessing the prospects of a future investment opportunity. Your answer should include a(-) relevant example(s) of each methodology.