Problem 3 A. B. Determine when a cash flow model is an appropriate model to value companies? (2 Marks) Discuss investment situations when using P/B can be misleading? (2 Marks) In the table below, compare to assess the value of each stock? C. Beta Trailing Leading P/E PIE 5 year Growth rate M&S 10.0 8.7 11.0% 1.3 Basic Designs 14.0 12.7 9.0% 1.4 Peer Median 13.3 12.1 11.0% 1.3 (2 Marks) (6 Marks in Total)