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Please Help me to explane this question. Sto ions Dividend Growth models (25%) 1. (10 pu Describe Gordon Growth Model. a. Write out the formula

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Sto ions Dividend Growth models (25%) 1. (10 pu Describe Gordon Growth Model. a. Write out the formula b. Describe strengths and limitations of the Gordon growth model and justify its selection to value a company's common shares. 2. Explain the growth phase, transitional phase, and maturity phase of a business. Using the example below: Spreadsheet Modeling Illustration Growth Rates Year 1 2 3 4 5 6 7 and after Scenario 1 20% 19% 13% 5% 5% 5% 5% Scenario 2 20% 19% 13% 11% 5% 5% 5% Scenario 3 20% 19% 13% 11% 8% 7% 5%

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