Discuss the Constant Growth Model of stock valuation. Include in your discussion the advantages, disadvantages and assumptions of the model.

2. Discuss the following questions regarding the valuation equations for bonds and for common stocks, which are listed below:

(1) What are in common in the valuation equations for bonds and for common stocks?

(2) What are the differences between the valuation equation for bonds and that for common stocks?

(3) Why cant we use the valuation equation for bonds to valuate the common stocks?