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please can u help me with this exercice in business finance Exercise 1 (20 points): XYZ tech is based in European Union. Share price of

please can u help me with this exercice in business finance
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Exercise 1 (20 points): XYZ tech is based in European Union. Share price of XYZ is traded at 60 euro per share. Company is paying dividends once a year. Expected dividend next year is about 1.2 euro per share. Return on equity is equal to 0.10. Question 1.1: Using Gordon model find implied growth rate of the company XYZ (10 points) Question 1.2: You are worrying that company might be overvalued. Forward P/E ratio in tech sector is about 20. Analysts (whom you trust) expect that earnings per share will be 2 euro per share. Use relative (multiples) valuation method to estimate "fair" share price. Compare your estimate to the actual share price and make a conclusion whether company is overvalued or no? (10 points) Exercise 2 (30 points): Procter & Gamble will pay an annual dividend of $2 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After then, growth will level off at 2% per year. What is the value of a share of Procter & Gamble stock if the firm's equity cost of capital is 10%

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